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
Klassen: Feeder cattle succumb to negative margins
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
Klassen: Fed cattle market lifts feeder prices
Compared to last week, western Canadian feeder cattle markets traded $4 on either side of unchanged. Early in the week, the market was rather sluggish but a fortuitous bounce in the live cattle futures quickly spilled over into the feeder complex. Yearlings and heavier calves ended the week $2 to $4 higher. Feeding margins are […] Read more
Beef demand in 2018 pushes more production
Market Update: Fed-cattle prices need to rally for feeders to be profitable
During the second week of December, Alberta packers were buying fed cattle in the range of $150 to $152, up from $2 to $4 from a month earlier. Market-ready supplies in Alberta and Saskatchewan are running above year-ago levels which has limited the upside in the fed cattle market. South of the border, U.S. fed-cattle […] Read more
Klassen: Feeder market starts year with cautious tone
Western Canadian feeder cattle prices were relatively unchanged to slightly softer compared to mid-December. The market was lightly tested, with direct off farm to feedlot trade, but auction market activity was rather quiet. Winter conditions in southern Alberta caused buyers to be on the defensive, with lighter calves reflecting small discounts; however, vaccinated feeders on […] Read more
Klassen: Favourable margins support feeder market
There were no sales last week with auction barns closed for the holiday season; therefore, we start the year looking forward at factors that will influence the feeder market over the next month. While the feeder market was quiet, feedlot operators were surprised with the U.S. fed cattle market jumping US$3-$4 from seven days earlier. […] Read more
Klassen: Feeder market ends year on firm tone
Compared to last week, western Canadian feeder markets traded $3-$5 higher. Auction barns in the major feeding regions of Alberta had limited numbers on offer last week; therefore, major operations were sourcing feeders from farther distances. While most feedlots are carrying sufficient numbers, year-end buying was able set the market on a firm tone. April […] Read more