Klassen: Calf markets continue to climb

For the week ending February 7, Western Canadian feeder markets traded $10 higher to $10 lower compared to seven days earlier. The cash market was extremely volatile as the sell-off in the feeder cattle futures on Thursday, February 5, installed cautious tone amongst buyers late in the week.

Fleshier cattle in smaller packages were discounted quite heavily off average values. Finishing feedlots are in their fourth month of negative margins and buyers are becoming more finicky on cattle quality.

The Ponoka video sale had a package of 263 black mixed steers with a mean weight of 946 pounds coming off a diet of corn silage and minerals with full processing data, (including implants) valued at $471/cwt for immediate delivery.

In the Lethbridge area, a backgrounding operator sold a uniform pen-size group of Simmental cross heifers weighing 950 pounds, on a diet of barley silage and light grain with processing records and recent implants for $445/cwt fob farm for immediate delivery.

The Ste Rose Auction in Manitoba reported a group of 46 Simmental steers weighing 808 pounds traded for $519/cwt. In central Alberta, a group of 120 mixed red heifers weighing 825 pounds on light grain and silage diet (controlled weight gain) carrying lighter flesh with full processing records sold for $465/cwt.

At the Killarney sale, a group of 14 Charolais steers averaging 727 pounds sold for $563/cwt. Northwest of Saskatoon, light flesh, large frame, tan heifers on barley silage, backgrounding ration with full processing records and recent implants were valued at $526/cwt.

A the Lloydminster sale, a group of black steers averaging 626 pounds dropped the gavel at $661/cwt. At the same sale, six-pack of Charolais heifers evaluated at 639 pounds were last bid at $560/cwt.

North of Calgary, a farmer reported that a group of Angus cross weaned steers averaging 515 pounds with full preconditioning sold for $760 and similar quality/genetic heifers scaled at 500 pounds traded for $690/cwt.

The Vermillion market report included a trio of tan steers weighing 487 pounds priced at $792. West of Edmonton, a cattle buyer reported at group of tans steers weighing 463 pounds notched the board at $845/cwt.

Strong demand surfaced for calves throughout the week. Usually, buyers shopping for grassers out bid the feedlot operator. Not this year.

Quality preconditioned calves were the bright spot last week trading $5-$10 higher.