Compared to last week, western Canadian yearling markets traded $2-$3 on either side of unchanged. Calves in the range of 600-800 lbs. traded steady to $4 higher. Calves under 600 lbs. were $1-$2 higher in Alberta and Saskatchewan but traded $2-$3 lower in Manitoba.
Alberta feedlot operators appeared to shrug off the geopolitical events last week. The removal of border blockades enhanced buying interest. Corn shipments from south of the border had been delayed through Coutts and some feedlot operators postponed fed cattle shipments south while protests were in operation. The resumption of normal logistics for corn and fed cattle helped sustain feeder cattle prices. U.S. buyers appeared to be more cautious and reined in buying interest at Manitoba markets after the sell-off in feeder cattle futures.
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Early in the week south of Edmonton, Charolais-blended steers averaging 940 lbs. with medium to thicker flesh on light grain ration with full health records were valued at $182. Late in the week, mixed larger-frame steers with a minor coat of butter coming on light grain ration with full health records showing vaccination weighing 960 lbs. were quoted at $189. Northwest of Winnipeg, Angus-blended steers with medium flesh weighing 840 lbs. were quoted at $182. It’s that time of year when buyers have a fine eye for flesh levels and cattle that look hard were discounted accordingly. In eastern Saskatchewan, a small group of Simmental mixed steers with lower flesh levels on forage diet weighing just over 800 lbs. reached up to $193.
North of Calgary, Angus-based steers weighing a shade over 700 lbs. were valued at $210 and Simmental mixed heifers weighing 710 lbs. were quoted at $178. In western Manitoba, Charolais-based steers weighing 625 lbs. were quoted at $225 while in central Alberta, tan steers weighing 630 lbs. dropped the gavel at $235. Feedlot operators in Alberta were extremely aggressive on 600- to 700-lb. feeders last week.
In southern Alberta, a larger group of mixed steers averaging just over 500 lbs. were valued at $253 landed in the feedlot; similar-quality and -weight heifers were quoted at $209 delivered feedlot in the Lethbridge area. In east-central Alberta, exotic black steers weighing 545 lbs. dropped the gavel at $252 and black heifers weighing 540 lbs. were purchased for $204.
Statistics Canada estimated Canadian calves under one year old on all cattle operations as of Jan. 1 at 3.763 million head, up 45,000 head from Jan. 1, 2021. In the western provinces, calves under one year old on cow-calf operations as of Jan. 1 were at 1.966 million head, up 111,000 head from Jan. 1, 2020. Beef cows on cow-calf operations in the western provinces were only down 24,000 head from last year. These numbers were a surprise for the trade because the industry was expecting significant herd contraction over the past year.
— 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.
