Western Canadian feeder cattle prices were relatively unchanged compared to seven days earlier. Buying interest for yearlings was somewhat stronger while calves in the eastern Prairie regions were softer. Moderate temperatures are in the seven-day forecast for most of Western Canada, so the risk discount due to adverse weather has evaporated. Barley jumped an additional […] Read more
Klassen: Feeder market holds value
Canadian prices divorce from U.S. fundamentals
Market Update with Jerry Klassen: Alberta feeding margins are in the red by $200 per head for feedlots selling in the spot market
There was unusual price behaviour in western fed and feeder markets during the first weeks of February. Earlier in January, Alberta fed cattle prices reached a high of $166 on live basis for March delivery. By mid-February, Alberta packers were only bidding $150 on a live basis for March 1-15 delivery. At the same time, […] Read more
Klassen: Feeder market sends mixed signals
Compared to last week, western Canadian yearling markets were steady to $4 lower while calves were steady to $2 higher. Barley prices have jumped $3-$6 per tonne over the past week, with winter conditions hindering off-farm logistics. Alberta packers were buying fed cattle in the range of $149-$150 last week; however, in Nebraska, fed cattle […] Read more
Klassen: Winter conditions weigh on feeder market
Western Canadian feeder cattle prices were relatively unchanged from week-ago levels. The major feeding regions from Alberta to the U.S. Midwest and southern Plains have all experienced severe storms and extreme temperatures. The forecast for southern Alberta calls for lows of -25 to -32 C over the next seven days. Auction markets have a few […] Read more
Understanding feeder cattle price structure
Market Update with Jerry Klassen: Comparing prices for custom feeders and a finishing feedlot
The feeder cattle futures have traded in a narrow range since early November but we’ve seen severe swings in the western Canadian feeder cattle basis. This has made it difficult for the cow-calf operator and backgrounding operator to project a forward price for summer and fall. I’ve also received inquiries in regards to the price […] Read more
Klassen: Feeder cattle succumb to negative margins
Alberta fed cattle prices have dropped nearly $15 over the past three weeks. Feedlot margins are deep in red ink, with losses amounting to $200-250 per head. Compared to last week, yearlings and calves over 700 lbs. traded $3-$5 lower; calves under 700 lbs. were down $5-$8 with some feeder markets in Alberta dropping as […] Read more
Most indicators point to favourable market
Market Update: Numbers for the first quarter show good demand, strong prices
Alberta packers were buying fed cattle at $268 on dressed basis in mid-January, which is up $10 from last month. Fed cattle values on a live basis were quoted at $163 in Alberta and US$124 in the U.S. Southern Plains. The market appears to be percolating higher due to tighter than expected market ready supplies. […] Read more
Klassen: Fed cattle weakness pressures yearlings
Compared to last week, western Canadian yearlings and calves over 700 lbs. traded steady to $3 lower on average. Weakness in the fed cattle market weighed on the heavier replacements. Alberta packers were buying fed cattle at $155 on a live basis, down $7 from the highs seven days earlier. Barley prices were up $3-$5 […] Read more
Klassen: Feeder market easily absorbs adverse weather
Western Canadian feeder markets were relatively unchanged from week-ago levels but there were a couple of unique characteristics in certain regions. Quality yearling packages were $2-$4 higher in Alberta but fleshier replacements were discounted. Eastern Prairie regions had grass cattle under 600 lbs. trading $3 to as much as $8 above week-ago levels. Order buyers […] Read more
A look at what’s ahead for the Canadian dollar
Market Update with Jerry Klassen: Expect a slower economy, more debt and likely more taxes
The Canadian dollar eroded by 7.8 per cent during 2018 with most of this deterioration coming in the fourth quarter. For cattle producers, this isn’t necessarily negative. Recent data shows that year-to-date feeder cattle exports for the week ending Dec. 8, 2018 were 191,863 head, up a whopping 66 per cent over the same period […] Read more
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