For the week ending June 29, Western Canadian yearling and calf markets were unchanged from seven days earlier. Many auction barns are in holiday mode and volumes were light, making the market hard to define. Late blooming stragglers and off grade calves were common. Small packages of quality yearlings were available but the buying crowd was rather small. Ranchers could also pick up mediocre looking cow calf pairs for reasonable prices.
Pasture ratings are good to excellent across the Prairies and crops are developing under greenhouse conditions. Alberta feeding margins continue to hover in positive territory; however, the deferred live cattle futures need to make another leg higher so that profitability continues on current replacements. Cattle markets are in a precarious situation. The summer slowdown is welcome period for inactivity because one month from now, it will be all hands to the grindstone.
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In central Alberta, Simmental blended heifers off grass, with health records, averaging 915 pounds apparently sold for $310. In southern Alberta, a small package of mixed steers around 920 pounds reportedly traded for $326. In central Saskatchewan, tan steers on pasture and light grain diet, weighing just over 800 pounds were valued at $350 fob farm. In the same region, a handful of Angus blended, thinner heifers with mean weight of 810 pounds were quoted at $330.
In central Alberta, a pair of black steers weighing 760 pounds were quoted $353. On the eastern side of the Wild Rose province, a smaller package of 720-pound, thin mixed steers were valued $392. In Central Saskatchewan, a small group of larger frame, mixed heifers on the card at 710 pounds moved through the ring at $348. Northeast of Calgary, a foursome of black heifers around 660 pounds were valued at $365.
West of Edmonton, three medium to larger frame, tan steers weighing 600 pounds sold for $429. At the same sale, a pair of mixed heifers with scale data at 522 pounds supposedly dropped the gavel at $370. Southeast of Edmonton, a smaller package of mixed weaned steers averaging 520 pounds.
Canadian farmers planted 6.4 million acres this spring according to Statistics Canada. This compares to the March intentions number of 7.1 million and down from the 2023 seeded area of 7.3 million acres. Barley stocks for the 2024/25 crop year will be tighter than earlier anticipated which may temper the upside in the feeder market later in fall.
— 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.
