For the week ending May 23, western Canadian feeder cattle markets traded $5-$10 per hundredweight higher on average than seven days earlier.
Backgrounded replacements heavier than 900 pounds were up $3-$6 per cwt., but strength was evident in the 600-900 lb. weight categories.
Calves lighter than 600 lb. were up $8 to as much as $15 per cwt.
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Improving feedlot margins contributed to the stronger demand.
Alberta packers were buying finished cattle on a dressed basis at $500 per cwt. delivered, which was a fresh record high.
Using a 60 per cent grading, this equates to $300 per cwt.
Feedlot break-even pen closeouts are in the range of $260-$270 per cwt.
Larger groups of quality packages are limited at this time of year.
Canadian and U.S. beef production estimates have been lowered for the fourth quarter of 2025, which was also supportive. Therefore, feedlot owners continue to be aggressive on cattle that will be available for the latter half of 2025.
At the Lloydminster sale, larger frame, medium to lower flesh Simmental based steers weighing 938 lb. traded for $391 per cwt. At the same sale, larger frame silver steers on backgrounding ration with full preconditioning with a mean weight of 825 lb. were last bid at $459 per cwt.
At the Ponoka, Alta., sale, tan heifers averaging 924 lb. were valued at $369 per cwt., and black heifers evaluated at 802 lb. notched the board at $411.
At the Rimbey, Alta., sale, short-weaned mixed steers with full processing records averaging 740 lb. sold for $468 per cwt. This was the first week that 700 lb. steers broke the $500 per cwt. barrier.
At the St Rose sale in Manitoba, Charolais steers averaging 701 lb. marked the charts at $519.
Similarly, the Lloydminster market report had red steers slightly heavier than 700 lb. settling at $515 per cwt.
The Vermillion Livestock Exchange in Alberta reported Charolais based heifers averaging 764 lb. selling for $444 per cwt.
North of Calgary, Angus cross weaned steers weighing 630 lb. reportedly sold for $530 per cwt. At the Ponoka sale, a handful of mixed weaned steers on light barley and silage diet with full processing data averaging 622 lb. reportedly traded for $523.
In central Saskatchewan, a smaller package of Charolais based heifers weighing slightly more than 600 lb. reportedly silenced the crowd at $480 per cwt., while the Lloydminster sale had red white-faced heifers evaluated at 637 lb. trading for $465 per cwt.
The Vermillion market report had a small group of British based heifers weighing 538 lb. selling for $549 per cwt.
At the St Rose du Lac sale, a handful of Charolais steers with a mean weight of 522 lb. reportedly sold for $624.
A couple of producers reported that steers weighing 500-525 lb. were reaching the range of $670-$680 per cwt. in eastern Saskatchewan with Ontario demand setting the stage.
U.S. wholesale beef prices set a fresh record with Choice product exceeding US$360 per cwt. and Select beef trading for $348 per cwt. This is up about $15-$20 per cwt. from three weeks earlier.
Beef demand is inelastic. A small change in supply has a large influence on the price, and the market is reflecting lower production estimates for the latter half of 2025.
Jerry Klassen is the president and founder of Resilient Capital, specializing in proprietary commodity futures trading and market analysis. He can be reached at 204-504-8339 or via his website at resilcapital.com.
