Compared to last week, Western Canadian feeder cattle prices were steady to $5 higher.
Strength was noted in calves under 650 pounds while feeders over 700 pounds were relatively unchanged. Larger packages of weaned quality genetics were $8 to $10 higher in some cases.
Year-end buying was evident across the prairies, which enhanced buying interest. Despite the year-over-year increase in prices, demand has exceeded expectations. The higher prices have encouraged ranchers and cow calf producers to sell light-weight calves earlier than normal. This forward push in marketing behavior comes on the heels of consecutive year-over-year decreases in the calf crop. Therefore, feedlot operators are gearing up for a significant shortfall in overall feeder numbers in the first half of 2024. Buyers are stepping up earlier than normal for grassers. The pee-wee calves remain hot with larger operations placing these cattle in backgrounding custom feedyards.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
In central Saskatchewan, tan weaned steers with larger, thin frames weighing a shade over 900 pounds apparently traded for $293. At the Ponoka video sale, mixed steers over 60 day weaning period, averaging 820 pounds with full health data on silage and light barley diet, were last bid at $310. In the Edmonton region, Angus based semi-weaned heifers with full health data, weighing 850 pounds reportedly traded for $269.
In central Saskatchewan, exotic steers with full processing on the card at 700 pounds, coming off cows and hay diet, reportedly sold for $347. At the Ste. Rose Auction Market, mixed larger frame steers with on the scale at 647 pounds notched the chart at $371. Black heifers weighing 615 pounds were on the report at $306.
In the Saskatoon region, tan bawling steers weighing 600 pounds sold for $362, while the younger lonely brothers at 550 pounds silenced the crowd at $373. In southern Manitoba, Simmental based steers off their mothers at 560 pounds silenced the crowd at $412, and Angus based heifers weighing 515 pounds moved through the ring at $360.
In central Alberta, a small package of red steers weighing 445 pounds reportedly traded for $430. In southern Saskatchewan, black steers weighing 430 pounds supposedly traded for $480 and the same quality heifers at 420 pounds were quoted at $405.
The USDA WASDE report had 2024 U.S. fourth quarter beef production at 6.3 billion pounds. This would be down nearly 400 million pounds from the fourth quarter of 2023. This lower production estimate appears to be reinforcing the price structure for lighter calves.
— 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.
