Backgrounded replacements were relatively unchanged, but fleshier groups experienced sharper discounts compared to a week earlier.

Genetic quality appeared to influence the market on a larger scale for feeders weighing less than 700 pounds.

Medium to larger frame preconditioned calves appeared to trade steady to $10 higher on average, but “run of the mill” bawlers were steady to $10 lower.

If feeders had more risk on feed efficiencies or health, the market priced these cattle with appropriate discounts.

The TEAM market report included a group of 305 black steers with a mean weight of 1,000 pounds on barley, silage and supplement diet with full herd health records including implants that sold for $455 per hundredweight f.o.b. farm near Allan, Sask.

Northwest of Saskatoon, a pen-sized group of medium to larger frame mixed steers averaging 910 lb. carrying various butter levels on barley and silage diet with full processing records traded for $470 f.o.b. farm.

South of Edmonton, a half pen of larger frame Angus cross heifers on rolled barley and barley silage diet with full processing and implants averaging 875 pounds traded for $464 f.o.b. farm.

At the Ste. Rose auction, a smaller package of red mixed steers averaging 826 lb. traded for $507. At the same sale, a 10-pack of red and black heifers evaluated at 826 lb. sold for $459 per cwt.

In Ponoka, Alta., a group of eight lower flesh 810 lb. Simmental cross steers on barley and silage diet for two weeks with full processing records traded for $525 per cwt.

The Vermilion Livestock Exchange reported that five tan steers scaled at 723 lb. traded for $573 per cwt., and 14 tan heifers averaging 737 lb. dropped the gavel at $515 per cwt.

The VJV report from Rimbey, Alta., included a group of 14 mixed steer calves weighing 611 lb. coming off a diet of cereal silage, chopped hay and oats with full processing data that were last bid at $655 per cwt.

In central Alberta, a producer reported a group of mixed weaned heifers averaging 620 lb. with full preconditioning records on silage and limited rolled barley that exited the ring at $620 per cwt.

At the Vermilion sale, a six-pack of 550 lb. tans steers traded for $734 per cwt. and 11 red/white-face 500 lb. steers sold for $768 per cwt.

At the Ste. Rose auction, a pair of red and black steers weighing 432 lb. silenced the crowd at $842 per cwt.

The volume of calves weighing less than 550 lb. was limited across the Prairies, which made the market hard to define.

Alberta packers were buying fed cattle on a live basis at $325 per cwt. f.o.b. feedlot in the Lethbridge area. The break-even price on these finished cattle is around $355 per cwt.

This is the fifth consecutive month of negative margins for Alberta feedlots.

Currently, feedlots have bid up the price of backgrounded cattle (800 lb. plus) so that margins for August through October barely cover feed costs.

The deferred live cattle futures need to trade $10-$15 per cwt. higher for nearby feeder cattle prices to experience additional upside.

Restaurant traffic in the United States was running 20-25 per cent above year-ago levels this past week, while Canadian visits were up 25-28 per cent.

Higher energy prices have not changed consumer behaviour so far.

Backgrounded replacements were quite variable, with sharper discounts noted on fleshier groups.

The heifer discount to steers appeared to be wider in some cases, but it was largely based on quality features.

Calves may have been slightly softer this week, but larger groups weighing less than 600 pounds were hard to find. Smaller packages of calves around 500 lb. were down $10-$15 per cwt. on average.

The TEAM auction report included a group of 60 larger frame black steers with a mean weight of 1,025 lb. being fed eight lb. of barley and silage ration on the full herd health program that sold for $451 per cwt. f.o.b. farm near Saskatoon.

At the Ste. Rose auction, a smaller package of mixed steers weighing 894 lb. sold for $480 per cwt.

Northern Livestock Sales in Lloydminster reported a smaller package of Simmental-based heifers averaging 842 lb. that traded for $460 per cwt.

At the VJV sale in Ponoka, a group of 82 tan mixed steers averaging 850 lb. on barley and corn silage diet with full processing records and implants traded for $514 per cwt.

The VJV market report from Westlock included a smaller package of Simmental-Charolais cross steers evaluated at 709 lb. being fed silage and hay on full herd health program that dropped the gavel at $574 per cwt.

At the sale in Killarney, Man., an eight-pack of 727 lb. black heifers traded for $456 per cwt.

North of Calgary, a farmer reported that a smaller package of Angus-cross short-weaned heifers with a mean weight of 615 lb. coming off a diet of hay and silage with full processing traded for $605 at a ring sale.

Northwest of Saskatoon, a group of Charolais-cross weaned steers averaging 680 lb. with full preconditioning records on a diet of silage and pellets were valued at $680 per cwt. f.o.b. farm.

At the Killarney sale, a nine-pack of Charolais steers weighing 555 lb. sold for $656 per cwt., and a four-pack of the same genetics averaging 482 lb. notched the board at $735 per cwt.

The Vermilion Livestock Exchange reported a three-pack of British blended steers weighing 515 lb. that sold for $752 per cwt.

Alberta packers were buying fed cattle on a dressed basis at $540 per cwt. delivered, up from the range of $525-$538 per cwt. a week earlier.

Feedlot margins have improved but remain in negative territory, which is limiting the upside for feeder cattle prices.

Feed barley was trading in the Lethbridge area in the range of $295-$305 per tonne delivered, up $30-$40 per tonne from mid February.

U.S. cattle on feed as of March 1 were 11.549 million head, down only 28,000 head from March 1, 2025. Cattle on feed 180 days or more were 1.314 million head, almost double the level on March 1, 2025.

U.S. fed cattle marketing weights are sharply higher than last year.

The reverse situation is occurring in Western Canada.

Alberta packers have limited coverage and steer weights are the same as year-ago levels.

While the U.S. fed market may be under pressure in the short-term, Alberta fed cattle prices appear to be ratcheting higher.

Market-ready fed cattle supplies in Western Canada are at a seasonal low for April. This has been supportive for western Canadian feeder cattle prices.

Earlier in the week, the heavier weight categories came under pressure, while cattle lighter than 700 lb. held value. However, by Friday, all weight ranges exhibited a softer tone.

Feedlots are coming to the realization that the fed cattle market may not recover. Current inventory on unhedged cattle are severely under water for winter and spring 2026. This is the main factor driving the feeder as the fed market continues to trend lower.

The VJV market report from Westlock, Alta., had a smaller group of mixed, lower flesh yearling steers weighing 946 lb. that traded for $428 per cwt. At the same sale, a group of 15 Charolais cross steers scaled at 810 lb. traded for 457 per cwt.

At the St Rose Auction in Manitoba, there was a group of black and red heifers averaging 833 lb. that sold for $406 per cwt. The same report included a group of black, white face steers evaluated at 845 lb. that dropped the gavel at $445 per cwt.

The VJV market report from Ponoka, Alta., had a group of 31 red mixed, semi-weaned steers on a diet of corn silage and hay with full processing records but no implants, carrying 729 lb., selling for $518 per cwt. At the same sale, an eight-pack of mixed heifers on a diet of cows and silage with full health records with a mean weight of 734 lb. traded for $440 per cwt.

At the Prince Albert, Sask., sale, there was a pen-sized package of black steers averaging 600 lb. valued at $591 per cwt. At the same sale, black heifers with a mean weight of 603 lb. traded for $499 per cwt.

The Vermillion Livestock Exchange reported a group of 22 tan steers weighing 550 lb. that traded for $681 per cwt.

The Killarney market report included a group of red and black heifers averaging 530 lb. that notched the board at $590 per cwt. At the same sale, a dozen Charolais cross steers with a target weight of 538 lb. received a final bid of $651 per cwt.

For the week ending Nov. 22, feed barley in the Lethbridge area was trading in the range of $265-$273 per tonne, up $5-$10 per tonne from a week earlier.

Imported dried distiller grains from the United States have increased $20 to $30 per tonne.

Barley supplies are tightening in Western Canada due to the year-over-year increase in exports. This is contributing to feedlot margin deterioration.

Alberta packers were buying fed cattle in southern Alberta in the range of $290-$292 per cwt. f.o.b. feedlot. Break-even fed cattle prices start around $305 per cwt.

Feedlot margins are in negative territory. The break-even price for April is in the range of $350-$355 per cwt. on a live basis. There is a problem brewing in the feedlot sector.

In Alberta and Saskatchewan, cattle-on-feed inventories on Nov. 1 were up one per cent from last year.

Cattle on feed 180 days or more were similar to year-ago levels, but weights appear be increasing.

In the U.S., cattle on feed 180 days or more are up sharply from last year.

There is a burdensome fed cattle supply in the U.S. in the short-term. Packers are purposely curtailing the slaughter pace because margins have been in red ink for an extended period of time.

U.S. beef demand is at seasonal lows during January and February. It will take about three to four months for the market to absorb the burdensome supply of fed cattle on feed 180 days or more.