For the week ending December 21, Western Canadian backgrounded cattle and heavier calves were unchanged to $5 lower on average. Calves in the 600-800 pound range were relatively unchanged while calves under 600 pounds were steady to $10 higher.
Volumes were limited this past week with many auction barns closed for the season. Colder temperature and winter conditions were widespread across the Prairies, but the market held value. The April and June live cattle futures fell $4-$5 for the week, which weighed on the heavier weight categories.
The industry is bracing for fairly aggressive heifer retention during the summer and fall of 2025 which is underpinning calves under 700 pounds. Finishing feedlots are anticipating lower yearling supplies next summer and these operators want to secure early ownership by purchasing lighter calves now.
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In east-central Alberta, larger-wide frame, lower flesh Limousin based steers weighing just over 900 pounds were valued at $350. South of Edmonton a handful of mixed heifers weighing 925 pounds on backgrounder ration sold for $313. In central Alberta, Simmental Angus cross, weaned steers on hay and silage ration averaging 810 pounds apparently traded for $368. Near Calgary, a handful of fully weaned Charolais based steers weighing 805 pounds supposedly notched the board at $380.
In central Saskatchewan, a double handful of black semi-weaned steers carrying lighter butter averaging 740 pounds were valued at $392. In central Alberta, a larger group of mixed steers on silage and protein supplement evaluated at 746 pounds with full health data were let through the ring at $414. In the same region, a smaller group of mixed weaned heifers scaled at 715 pounds reportedly sold for $350.
In central Saskatchewan, Angus-based semi-weaned steers averaging around 650 pounds were apparently valued at $425. In central Alberta, a smaller package of mixed heifers coming off cows and hay diet with full health data on the card at 626 pounds supposedly settled at $386. South of Edmonton, black mixed steers averaging 600 pounds on diet composed of cows and hay with processing records were last bid at $437.
The Strathmore auction market report had steers weighing 600-650 pounds trading in the range of $450 to as high as $496 but we didn’t receive actual details from this sale. These were outlier prices for this weight range. West of Edmonton, a smaller package of mixed heifers off cows and creep barley around 662 pounds reached up to $393.
In central Saskatchewan, mixed steers (unknown weaning status) averaging 530 pounds settled at $525. North of Calgary, Angus cross, semi-weaned steers around 500 pounds supposedly traded for $535. In central Alberta, Charolais heifers coming off their mothers weighing 520 pounds were valued at $470.
On Thursday, December 19, Alberta packers were buying fed cattle on a dressed basis at $420/cwt delivered, up $15/cwt from 30 days earlier. U.S. packers were shopping more aggressively in Alberta with sales equating to $260-$262 fob feedlot in Southern Alberta. Feeding margins have improved which has rejuvenated buying interest for all weight categories of replacements.
— Jerry Klassen is president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. Jerry consults with feedlots on risk management and writes a weekly cattle market commentary. He can be reached at 204-504-8339 or via his website at ResilCapital.com.
