Western Canadian feeder cattle prices traded $3 to as much as $10 below week ago levels due to deteriorating feedlot margins and building beef supplies. Once again the bulk of the pressure was on the heavier weight categories as the deferred live cattle futures made fresh contract lows. Alberta packers showed limited interest in fed […] Read more
Klassen: Feeder cattle market remains sluggish
Market says plan on backgrounding cattle
Market Update with Jerry Klassen: Feedlot margins are not expected to improve until 2017
Alberta fed cattle prices dropped to a two-year low of $143 in late June as the beef complex absorbed the larger production. Cattle-on-feed inventories continue above year-ago levels, enhancing the weekly slaughter volumes. Wholesale beef prices have come under pressure and we are starting to see weakness in the retail market. Wholesale and retail beef […] Read more
Klassen: Feeder market remains in summer doldrums
Western Canadian feeder cattle prices were quite variable over the past week. Cattle weighing over 700 lbs. were under pressure while calves appeared to trade steady with week-ago levels. The Calgary Stampede period is one week that cattle men and women don’t worry about markets and just enjoy the celebration of fine culture. Small groups […] Read more
Klassen: Feeder market weathering summer storms
Western Canadian feeder cattle were traded $3 to $5 below week-ago levels, with replacements over 700 lbs. absorbing the bulk of the decline. Despite the sharp drop in barley prices, uncertainty in the deferred cash fed cattle prices caused feedlots operators to back away from the market. Secondly, ideas are that yearling prices will weaken […] Read more
Klassen: Feeder cattle market experiences thin trade
Western Canadian feeder cattle prices were relatively unchanged from week-ago levels. Many auction barns are in holiday mode and the shortened holiday week further shrunk market activity. In any case, feedlot operations on both sides of the border are focused on selling fed cattle and assessing current financial damage rather than bringing in replacements. The […] Read more
Klassen: Large beef supplies weigh on feeder market
Western Canadian feeder cattle prices experienced a week-over-week decline of $8-$12 on average while isolated sales dropped nearly $20. The sharp fall in the fed cattle market was the main reason for the deteriorating buying interest. Just when feedlots thought the worst was over, the market gave them another dose of reality. The retail market […] Read more
Klassen: Feeder market enters summer doldrums
Western Canadian feeder cattle markets experienced a softer tone over the past week as many auction barns are in summer holiday mode. Weakness in live and feeder cattle futures set a negative tone and by Friday, Alberta packers had dropped bids by nearly $12 on a dressed basis. Feedlot operators were once again on the […] Read more
Klassen: Feeder cattle market holds value
Western Canadian feeder cattle prices were steady to $5 higher over the past week on limited volumes. Stragglers from backgrounding operations and late-blooming calves set a reserved tone amongst buyers with large price variations at different regions of the Prairies. Feedlot margins are hovering around breakeven and there appears to be solid demand underneath the […] Read more
A good year to consider backgrounding cattle
Prices expected to be weakest during the fall of 2016
The U.S. cattle herd has been in the expansion phase over the past couple of years and it is difficult for many producers to come to terms with the recent price activity. I’ve received many calls from both cow-calf operators and feedlot operators in regards to the price outlook and I basically focus on the […] Read more
Klassen: Feeder cattle market well supported
Western Canadian feeder cattle prices were generally steady with week-ago levels as volumes continue to decline into the summer months. The quality of cattle coming on the market this time of year is quite variable. Background operations are liquidating their final volumes and feeders over 800 lbs. set the market structure. Larger-frame mixed steers averaging […] Read more
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