Western Canadian feeder cattle prices once again traded $3-$5 above week-ago levels, with shorter-keep quality cattle as much as $8 higher. Historically strong feeding margins, along with triple-digit gains in the futures market from Wednesday through Friday, set the positive tone. Feedlots that were holding back on purchases finally stepped forward, pushing the market to […] Read more
Klassen: Feeder cattle prices surge
What is the cattle futures market saying?
The combination of cash and futures market numbers will point the way
I’ve received numerous calls over the past month from cow-calf producers and backgrounding operators in regards to a marketing strategy for their individual operation. In four previous articles I’ve discussed the feeder cattle futures market and the historical relationship between the cash and futures market. I analyzed basis levels and discussed using the basis and futures for […] Read more
Klassen: Feedlot operators aggressively bid up feeders
Western Canadian feeder cattle continued the upward trend trading $5 to $8 above week-ago levels on average with higher quality feeders as much as $12 higher. Alberta packers were buying cattle near $177 on a live basis, which is about $35 above breakeven pen closeouts. Ongoing strength in the fed cattle market set a positive […] Read more
Klassen: Renewed confidence lifts feeder cattle market
Western Canadian feeder cattle markets traded $3-$5 above week-ago levels on average; stronger buying interest was noted on short-keep cattle with prices quoted $5 to as much as $8 higher. Feedlot operators stepped forward more aggressively with ideas that yearling supplies will dwindle over the next month. Quality cattle are starting to thin out at […] Read more
If you see a profit, take it
Markets have improved, but it likely won’t last
Fed and feeder cattle have been percolating higher over the past month as the market moves through a period of seasonal low beef production. Restaurant traffic sharply improves in March and April, and retail beef movement also increases. Consumers generally start eating more once spring rolls around and this year, the health of the overall […] Read more
Klassen: Limited demand means mixed tone for feeders
Western Canadian feeder cattle prices experienced a mixed tone this past week. Heavier weaned calves were trading steady to as much as $4 higher compared to last week; however, shorter-term replacements were steady to $3 lower. Alberta packers were buying fed cattle in the range of $170 to $172, down from week-ago levels of $177. […] Read more
Understanding feeder cattle options
The Markets: Using a “put” option to avoid margin calls
In the previous three columns on feeder cattle marketing (found in the ‘On our network’ column on the right-hand side of this page), I’ve discussed hedging feeder cattle production using the feeder cattle futures market. Many producers hesitate to use a futures market because of the cash flow requirements. When you sell a futures contract, there […] Read more
Klassen: Feeder cattle upward trend stalls
Western Canadian feeder cattle prices were relatively unchanged from week-ago levels. Noticeable slippage was noted in shorter-keep cattle while lighter weight categories experienced spurts of $2-$3 above last week’s prices. Alberta packers were buying fed cattle at $292 on a dressed basis, up about $4-$6 from week-ago levels. However, auction rings experienced a subdued tone […] Read more
Klassen: Feeder cattle continue upward trend
Western Canadian feeder cattle prices traded $3-$5 above week-ago levels with lighter weight categories selling $6 to $8 higher. Alberta packers were buying fed cattle in the range of $286 to $288 on a dressed basis, up from $278 last week. This equates to $172-$174 on a live basis, a solid $35 above break-even pen […] Read more
Klassen: Feeder cattle continue upward trend
Western Canadian feeder cattle prices traded $3-$5 above week-ago levels with higher-quality cattle as much as $8 higher. Once again, stronger fed cattle prices and healthy feedlot margins were the main factors driving the market, especially in the heavier weight categories. Feedlots have liquidated a larger amount of fed cattle over the few weeks and […] Read more