Compared to last week, western Canadian feeder markets yearling markets traded $2-$5 higher. Replacements in the 700- to 800-lb. weight category appeared to jump $5 to as much as $15 in some cases. Calves weighing 500-700 lbs. were unchanged to $4 higher on average after rallying nearly $20 over the past month. There were limited supplies of calves under 600 lbs. on offer in Alberta and Saskatchewan. Light-weight calves appeared to reflect a small premium in the western Prairie regions. Alberta packers were buying fed cattle on a dressed basis in the range of $337-$340/cwt, up $3-$8 from seven days earlier.
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In central Alberta, Simmental-blended steers on barley and silage diet with medium flesh levels with full health records averaging just over 900 lbs. dropped the gavel at $241. In the Red Deer region, backgrounded mixed heifers weighing 900 lbs. charted course at $223. Northwest of Winnipeg, Charolais-based steers with a light layer of butter evaluated at 860 lbs. silenced the crowd at $253 and similar genetic and quality 800-lb. steers were bid up to $265. In southern Alberta, red Angus/Simmental-mixed heifers in light grain ration with medium to lower flesh levels and full health records weighing 815 lbs. were quoted at $226.
In central Saskatchewan, Angus-based steers with medium to light flesh on light grain diet weighing just over 700 lbs. notched the board at $285. In the same region, larger-frame tan heifers recorded at 722 lbs. with lighter flesh were quoted at $235. South of Calgary, Hereford mixed steers on light barley and silage diet averaging 732 lbs. were valued at $280. North of Calgary, background mixed red and black heifers scaled at 750 lbs. reportedly sold for $225.
In the Lethbridge area, a small group of backgrounded Charolais-blended steers with larger frames weighing 712 lbs. were valued at $302. Near feedlot alley in southern Alberta, black steers on light barley ration weighing 690 lbs. reached up to $310. North of Calgary, larger-frame Angus mixed steers weighing 603 lbs. reportedly sold for $320.
In central Alberta, tan steer calves weighing 502 lbs. were quoted at $340 and their younger brothers averaging 460 lbs. sold for $360. North of Brandon, Charolais-based heifers viewed at 530 lbs. silenced the crowd at $285.
According to Statistics Canada, total heifers, steers, and calves under one year old outside finishing operations in Western Canada as of Jan. 1, 2023, totalled 3.106 million head, down 102,200 head from 12 months earlier. U.S. feeder cattle supplies outside finishing feedlots as of Jan. 1, 2023, were 25.267 million head, down 723,700 head from last year. This is the lowest number since 2015. It all comes down to supply and demand. Lower supplies results in higher demand, which causes prices to trend higher.
— 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.
