This is a perfect example of why SCTV was unlike any other comedy troupe before or since. They did deeply bizarre things. Another testimony: the ad for Edna Boil's Prairie Museum and Curio Emporium, where they wired up dogs to walk around in Christmas themed maternity gowns. It's so insane as to be a gift from Heaven.
John Candy and Martin Short both used to be on David Steinberg's TV show. I have to say, quite a lot of the SCTV jokes rely on knowledge of short lived 70s TV shows. I wouldn't have it any other way.