Compared to last week, western Canadian yearling markets traded steady to $3 higher while calves were $4 lower to $5 higher depending on the region. Weakness in the live and feeder cattle futures contributed to the variable price structure; however, Alberta packers were buying fed cattle in the range of $268-$270 on a dressed basis, […] Read more
Klassen: Feeder market balancing many variables
Klassen: Feeder market incorporates risk premium following U.S. floods
Compared to the previous week, western Canadian feeder cattle sold steady to $4 higher the week ending March 23. Favourable spring weather enhanced demand for yearlings from major finishing operations; Lethbridge-area markets were notably $3-$5 higher as feedlots focused on local cattle. While feeding margins remain in negative territory, strength in the deferred live cattle […] Read more
U.S. cattle herd still growing, but at a slower pace
Market Update: Numbers indicate we're still a couple of years away from contraction
The USDA cattle inventory report in late February showed cattle inventory and calf numbers were above a year ago, but the expansionary phase appears to be slowing. Canadian feeder cattle exports to the U.S. for 2018 had a year-over-year increase of 65 per cent. The larger U.S. calf crop may temper demand for Canadian feeder […] Read more
Klassen: Feeder market continues consolidation pattern
Compared to last week, western Canadian feeder cattle markets traded $3-$5 on either side of unchanged. The market was quite variable across the Prairies. Demand from south of the border evaporated due to adverse weather while southern Alberta experienced favourable spring conditions. Alberta packers were buying fed cattle at $260 on a dressed basis, up […] Read more
Feed grain supplies down, then up by fall
Market Update: Late 2019 may be a good time to think about backgrounding
The price of feeder cattle is influenced by two main factors — the expected fed cattle price when the feeder is finished; and the price of feed grains. Let’s have a look at the fundamentals for Canadian barley as well as a brief overview of the corn situation. As of early March, Lethbridge-area feedlots were […] Read more
Klassen: Feeder market holds value
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
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