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
Klassen: Feeder cattle market holds value
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
Klassen: Feeder cattle market remains vulnerable
After a firmer tone the last two weeks, feeder cattle values felt sluggish across the Prairies. Western Canadian prices were quoted from unchanged to $5 lower; smaller sales with variable quality saw prices fall as much as $10 below week-ago levels. Feedlot operators were taken aback by the sharp decline in the live cattle futures […] Read more
Klassen: Improving margins support feeder market
Average western Canadian feeder cattle prices were $3-$5 above week-ago levels, with top-quality larger groups trading as much as $8-$10 higher. While current pen closeouts remain underwater, the deferred positions are somewhat brighter, which has rejuvenated buying enthusiasm. Most risk management strategies rely on cattle feeders staying in the game all year. There appears to […] Read more
Higher production keeps beef prices under pressure
Market Update: Slaughter numbers are down, but carcass weights are up
Fed and feeder cattle prices have come under pressure over the past couple of weeks as the market absorbs the year-over-year increase in second quarter beef production. Cattle-on-feed inventories in Canada and the U.S. are running slightly above year-ago numbers, but carcass weights are sharply higher. Despite the lower cattle prices, retail beef prices are […] Read more
Klassen: Feeder market bounces off previous lows
Western Canadian feeder cattle prices traded $5-$8 above week-ago levels with quality groups of steers selling for as much as $10 higher. Renewed optimism surfaced amongst feedlot operators as feeding margins appear to be moving above break-even pen closeout values. Auction markets that only had two or three major buyers at previous sales in spring […] Read more
Klassen: Drop in fed cattle prices weighs on feeder complex
Alberta fed cattle prices dropped sharply last week, with dressed sales falling $10 to $20 from seven days earlier. Despite the weakening Canadian dollar, wholesale beef prices also fell US$10/cwt which offset any currency benefit. Feedlot operators froze with disbelief as the market suffered one of the sharpest week-over-week declines in recent memory. The hot […] Read more
Klassen: Downward price trend continues for feeder cattle
The feeder cattle market feels like a falling dagger — and trying to pick a bottom can be painful. Western Canadian auction markets saw heavier replacements over 800 lbs. fall $8-$12 compared to last week; calves were generally $5-$8 below week-ago levels. Feedlot buying interest was once again limited to two or three major operations […] Read more
Klassen: Limited buying interest softens feeder market
Just when I thought feeder cattle prices were stabilizing, once again the unexpected occurs. A sharp rally in U.S. grain futures, along with weaker fed cattle prices, caused western Canadian feeder cattle to trade $6-$12 lower compared to week-ago levels. Auction markets reported limited buying interest, with often only two or three larger feedlots stepping […] Read more