For the week ending October 5, Western Canadian prices for grass yearlings were steady to as much as $10 higher while values for backgrounded yearlings were relatively unchanged. Calf markets were quite variable with preconditioned 650-800 pound calves trading $4-$8 above week-ago levels. Prices for non-weaned bawlers were relatively unchanged.
Finishing feedlots in Alberta were more aggressive on local yearling grassers and were also setting the price structure across the Prairies. The Lethbridge premium resurfaced and led all Prairie markets higher. Ontario buying interest was more evident on pre-conditioned calves although buyers reported eastern demand across all weight categories. Strength in live cattle futures along with the softer Canadian dollar contributed to the firmer tone.
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Demand from backgrounding operators was surfacing on light heifers and bulls or calves needed extra care and attention. Pre-conditioned weaned calves that will adjust to their new environment without any efficiency drag reflected a $6 to $12 premium over average values for non-weaned smaller parcels.
In the Lethbridge region, a smaller package of red steers weighing 915 pounds straight off pasture sold for $341 and black heifers off grass weighing 885 pounds dropped the gavel at $314. Northwest of Winnipeg, Charolais-based steers off grass weighing 935 pounds sold for $320 and black heifers around 930 pounds were last bid at $298.
In Dawson Creek, a small group of Simmental-Angus blend steer calves off cows and grass with full health records weighing a shade under 800 pounds sold for $345. In north-central Saskatchewan, Angus based steers off grass and cows weighing 734 pounds traded for $371. In southern Manitoba, black, non-weaned steer calves weighing 700 pounds traded for $384 and similar weight and quality heifers were valued at $334.
In central Alberta, short-weaned Limousin heifers off pasture with full health records averaging 600 pounds sold for $364 and similar quality and genetic steers weighing 650 pounds traded for $395. At the Lloydminster sale, a larger group of red steers weighing 605 pounds reached up to $412. In southern Manitoba, black bawling Angus-mixed steers weighing 550 pounds apparently sold for $430.
Some feedlots report that current calf prices pencil near break-even for the fed market next spring and summer. This is underpinning the overall feeder complex. There was definitely a larger buying crowd this past week and order buyers had full decks. Open demand is significant at this time of year with plenty of pen space available.
— 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.
