For the week ending September 21, Western Canadian yearling markets were relatively unchanged compared to seven days earlier. Calves traded $10 lower to $5 higher depending on vaccinations and weaning.
Ontario buying interest was evident in Manitoba yearling markets. U.S. buyers were more interested in lighter calves and were shopping for pre-conditioned groups of sizeable volume. Certain finishing operators in Alberta were more aggressive on grass yearlings after waiting for lower prices earlier in the season.
Supplies of these feed efficient cattle are dwindling and there is limited time to secure quantity. Certain feedlots in southern Alberta focused on local cattle, resulting in a Lethbridge premium.
Read Also
U.S. livestock: Feeder cattle extend rally to new highs
Chicago Mercantile Exchange feeder cattle futures extended gains to record highs on Wednesday while live cattle futures set a contract high before pulling back.
Once again calf markets were quite variable across the Prairies. There were some fairly heavy discounts on non-weaned calves in the 500-800 pound categories. However, buyers shrugged off weaning status for calves under 500 pounds.
In central Alberta, larger, wider frame, Limousin/Angus blended steers off grass with full health records averaging 950 pounds sold for $320. In the same region, tan heifers off grass and mineral supplement averaging 870 pounds dropped the gavel at $317. In southwest Manitoba, medium to larger frame black steers off grass averaging 925 pounds supposedly traded for $327. Northwest of Winnipeg, Simmental-based steers off grass weighing 800 pounds were last bid at $363 and Charolais heifers around 850 pounds apparently sold for $316. Near Lethbridge, a smaller group of Angus steers off grass weighing 841 pounds traded at $366.
In west-central Saskatchewan, a handful medium to larger frame Simmental weaned steer calves weighing 700 pounds sold for $395. In central Alberta, Simmental-blended weaned heifer calves off grass and hay weighing 700 pounds traded for $317.
South of Brandon, a handful of black weaned steers averaging 626 pounds traded for $383. Northwest of Winnipeg, mixed weaned heifers weighing 630 pounds sold for $347. Southeast of Saskatoon, Charolais weaned steers weighing just over 600 pounds reportedly traded for $406. South of Edmonton, red-white-face, weaned steers off grass averaging 631 pounds were also matched with buyer at $405.
In west-central Saskatchewan, a double hand of black weaned steers weighing just over 500 pounds traded for $494. In southern Manitoba, a handful black steers off their mothers weighing 510 pounds traded for $430. West of Edmonton, Angus mixed bawling steers on the card at 500 pounds were last bid at $440. Near Lethbridge, a score of black steers around 450 pounds were last bid at $451. In central Alberta near the Saskatchewan border, exotic 400 pound steers reached the lofty level of $530.
The U.S. Federal Reserve’s move to reduce their benchmark rate by 50 basis renewed market optimism in the feeder complex. Ideas were that lower interest rates would eventually enhance beef demand. It’s more likely a sign that fed officials are concerned about rising unemployment levels and slower economic growth which usually results in lower restaurant spending.
— 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.
