For the week ending February 17, Western Canadian prices for yearlings and backgrounded cattle were quoted $2-$4/cwt higher than seven days earlier.
Feeder cattle in the 650-800-pound category were up $3-$7 while calves under 600 pounds were up $5/cwt to as much as $10/cwt with the week-over-week surge occurring late in the week.
Finishing feedlot demand was noted across all weight categories; however, noted strength was evident in the 650-800 pound as these cattle will be finished in the third and fourth quarters of 2024. Ontario interest was supportive on 800 pound plus cattle in Saskatchewan and Manitoba setting a premium over Alberta values in some cases. The December live cattle futures have been trading at a $6/cwt premium to the August contract.
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We’ve seen an improvement in moisture conditions across Alberta and Saskatchewan and demand for grassers has significantly improved. Calves under 600 pounds are hard to find and if there are quality groups available, order buyers have a deck of interest a mile high.
South of Edmonton, larger frame tan steers with medium flesh weighing 1,005 pounds on light grain and forage diet with full processing data dropped the gavel at $301. In the same region, larger frame Simmental blended fleshier heifers weighing in at 966 pounds on light grain and silage diet with health data were last bid at $290.
North of Brandon, larger frame medium flesh black steers averaging just over 900 pounds charted the sheet at $306. North of Calgary, a smaller package of backgrounded Angus based steers with some carrying thicker butter weighing just over 800 pounds sold $325. Southeast of Saskatoon, thinner mixed weaned steer calves on hay and forage diet on the card at 810 pounds were valued at $340.
In Central Alberta, mixed weaned steers on light grain and silage diet with full processing data weighing 745 pounds reportedly sold for $343. Near Lethbridge, a smaller package of 700 pound tan, weaned steers with lighter flesh apparently traded for $376. In Southern Manitoba, a handful of Limousin blended weaned steers around 600 pounds supposedly traded for $405. Northwest of Winnipeg, a small group of black Angus based weaned heifers near 625 pounds dropped the gavel at $331.
The market report from St Rose du Lac, Manitoba, had tan mixed steers weighing 500 pounds selling for $453 and black heifers just under 450 pounds were quoted at $417. A buyer’s comment from east-central Saskatchewan had black steers at 500 pounds valued at $464.
Comments from certain buyers suggest that some heifers are being purchased for breeding. Mixed heifers weighing around 700 pounds selling for $330/cwt will double the value if they’re grown and bred. Younger bred cows for May-July calving selling for $2500-$3000 appears to be good value with 400 pound steers clearly over $500/cwt. The old saying that any asset is worth the present value of future earnings makes these heifers a steal.
— 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.
