Feb. 15 — The 2008 Canadian calf crop was 5.288 million head. The January-through-June 2009 calf crop was 4.402 million. My projections have the July-through-December 2009 calf crop at 700,000 head. (Official data will be available later this month.) If we account for dairy retention, Canadian beef calves born from June through December 2009 are […] Read more
Klassen: U.S. weather strengthens feeder market
Factors Affecting Beef Demand
The cattle market is unique when it comes to analyzing the fundamental structure. Unlike other commodity markets, regular supply and demand relationships don’t hold water in the cattle complex. For example, feeder cattle prices were at 10-year lows this past fall and yet the U. S. calf crop was the lowest since 1949. Price forecasting […] Read more
Klassen: Tighter feeder supplies expected in spring
Feb. 8 — A weaker Canadian dollar and softer feed grain prices have set a positive tone to the feeder cattle market in Western Canada. Finishing feedlots are realizing lower costs per pound gain and there appears to be renewed optimism as margins slowly improve. Auction market numbers in Alberta are running 10 per cent […] Read more
Klassen: USDA confirms lower calf crop
Feb. 1 — The U.S. Department of Agriculture’s cattle inventory report was considered constructive for the beef complex. Total U.S. cattle inventory as of Jan. 1 was 93.701 million, down one per cent from last year. Beef cows that have calved were also down one per cent from last year at 31.376 million. The 2009 […] Read more
Klassen: Feeder cattle values edge higher
Jan. 25 — Feeder cattle prices in Western Canada were $3 to $5 higher last week; U.S. prices were also $2 to $4 higher for heavier animals, while cattle under 500 pounds were $8 to $10 higher for the second week in a row. Despite larger numbers of feeder cattle coming on the market, values […] Read more
Klassen: Weaker feedgrain values support feeders
Jan. 18 — The bearish U.S. Department of Agriculture corn report had a positive effect on the North American feeder cattle complex. Prices in the U.S. southern Plains were quite strong and feedlots appear to have renewed optimism. Lightweight feeder cattle under 600 pounds sold for $4-$6 per hundredweight (cwt) higher than last week. In […] Read more
Klassen: Feeder market stays under pressure
Jan. 11 — Feeder cattle prices in Western Canada were slightly lower over the past week due to the stronger Canadian dollar and weaker feedlot demand. Weather is setting a negative tone to overall market conditions on both sides of the border. Feedlots in the U.S. southern Plains were dealing with a foot of snow, […] Read more
Beef Demand Turning Corner
Fed cattle prices in Alberta were in the range of $73 to $75 in late December, down nearly $5 from a month earlier. At the same time, prices in Nebraska were quoted at $78 on a live basis and $128 on dressed basis. The fed cattle market is functioning to encourage demand, but market signals […] Read more
Klassen: Longer-term price outlook friendly on feeders
Jan. 4 — Auction markets have been rather quiet over the past couple weeks due to the holiday schedule. Feeder cattle prices appear to have stabilized for the time being. Looking forward, there are still a number of risks weighing on the market in the short term. Finishing feedlot margins continue to hover in red […] Read more
Klassen: Stronger loonie weighing on feeder cattle
Dec. 28 — The Canadian dollar has been trading in a range of US92-98 cents since October and the market is now at the upper end of this range. When a market trades in a range for a long period of time and then breaks out of this range, there is usually a significant move. […] Read more
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