Klassen: Western Canadian calf prices ratchet higher

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For the week ending January 24, Western Canadian feeder cattle markets traded $10/cwt lower to $10/cwt higher compared to seven days earlier.

The market was quite variable depending on flesh conditions and genetic quality. Prices for backgrounded yearlings or fall placed calves were steady to $5 higher on larger packages on controlled weight gain diets; however, smaller groups of fleshier replacements appeared to reflect larger discounts of $10-$15/cwt this past week. Larger packages of preconditioned, vaccinated, weaned calves were quoted $10- $15/cwt above week-ago levels.

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Alberta packers were buying fed cattle on a dressed basis in the range of $505-$508/cwt, delivered, unchanged from last week. Using a 60 per cent grading, live prices were quoted from $303/cwt to $305/cwt. For late January and February, Southern Alberta breakeven pen closeout values are in the range of $320-$325/cwt so feedlot margins are under water by $20/cwt.

The TEAM auction market report had 970 pound Simmental Angus cross steers weaned in October with full processing data and implants on barley and corn silage diet priced at $467 fob ranch near Bentley for delivery February 2-5. A producer northeast of Calgary reported a group of large wide frame Limousin cross heifers with a mean weight of 950 pounds with full processing data on light barley and forage diet moved off the farm at $425/cwt.

The Ste Rose Auction Mart reported at group of larger frame, medium to lower flesh, Simmental cross steers averaging 822 pounds sold for $516/cwt. At the Killarney Auction Mart, a package of 13 black heifers weighing 804 pounds traded for $439/cwt. The heifer discount to steers was more severe this past week, especially if they were fleshier cattle.

At the Ponoka sale, red mixed, weaned, steers averaging 705 pounds with lower flesh on forage diet with full preconditioning sold for $579/cwt. The Vermillion market report included a group of six tan heifers evaluated at 705 pounds exited the ring at $527/cwt.

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At the Lloydminster sale, a group of 15 black steers with a mean weight of 601 pounds dropped the gavel at $646/cwt. At the same sale, a group of 22 black heifers scaled at 606 pounds were last bid at $566/cwt.

The Westlock market report included a smaller package of Angus cross Gelbvieh vaccinated and weaned, steer calves averaging 520 pounds silenced the crowed at $743/cwt. The Gladstone market highlights included 30 black heifers chalked at 472 pounds notched the board at $670/cwt.

From July through December 2025, U.S. feedlot placements were 10.606 million head, down 932,000 head from the same period of 2024. The U.S. slaughter in the first half of 2026 will be down sharply from last year which should enhance fed cattle values in Alberta and improve feedlot margins.

About the author

Jerry Klassen

Jerry Klassen

Jerry Klassen graduated from the University of Alberta in 1996 with a degree in Agriculture Business. He has over 25 years of commodity trading and analytical experience working with various grain companies in all aspects of international grain merchandising. From 2010 through 2019, he was manager of Canadian operations for Swiss based trading company GAP SA Grains and Products ltd. Throughout his career, he has travelled to 37 countries and from 2017-2021, he was Chairman of the Canadian Grain and Oilseed Exporter Association. Jerry has a passion for farming; he owns land in Manitoba and Saskatchewan; the family farm/feedlot is in Southern Alberta. Since 2009, he has used the analytical skills to provide cattle and feed grain market analysis for feedlot operators in Alberta and Ontario. For speaking engagements or to subscribe to the Canadian Feedlot and Cattle Market Analysis, please contact him at 204 504 8339 or see the website www.resilcapital.com.

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