Western Canadian fed cattle prices have held value throughout the first quarter of 2016 with Alberta values ranging from $175 to $178 per cwt. Feeding margins remain in negative territory on current pen closeouts, which has caused market-ready supplies to back up in the country. Carcass weights are running sharply above last year as feedlot […] Read more
Good idea to contract fall calves
Market Update with Jerry Klassen
Klassen: Feeder cattle steady but demand remains sluggish
Western Canadian feeder cattle prices traded in line with week-ago levels on average, though the market was quite variable across the Prairies. Favourable temperatures in southern Alberta enhanced demand on all weight categories, especially on grassers from 500 to 650 lbs. Higher-quality backgrounded cattle were also $4-$8 higher in certain cases in Alberta. In Saskatchewan […] Read more
U.S. producers rebuilding cattle herds
Beef Market Trend: Reduced exports of live Canadian market cattle already happening
The USDA has released its January cattle inventory report with a few surprises about cattle numbers. It appears that U.S. cattle producers are expanding their herds more aggressively than expected and this will have a large bearing on Canadian fed and feeder cattle prices throughout 2016. Feeder cattle exports to the U.S. have fluctuated sharply […] Read more
Klassen: Buyers risk-averse on feeder cattle
Western Canadian feeder cattle markets were trading $5-$10 below values seven days earlier. Sharper declines were noted on heavier replacements over 800 lbs., which at times sold for $15 below week-ago levels; quality mid-weight feeders in the range of 600 to 800 lbs. were down $8 on average. Eastern Prairie markets held value on feeders […] Read more
Klassen: Lower fed cattle market pressures feeders
Western Canadian feeder cattle prices were trading $5-$10 below week-ago levels on average last week. Fully weaned vaccinated calves were trading down $5-$8 while semi-weaned bawlers were down a solid $10. Shorter-keep replacements over 850 lbs. were down $8-$12 depending on flesh levels but harder-looking cattle were down sharply, as much as $15. Extremely cold […] Read more
Klassen: Feedlots risk-averse on feeder cattle purchases
Western Canadian feeder cattle markets experienced a softer tone over the past week. Alberta prices were generally steady to $4 lower while in the eastern Prairies, markets were $4 to $7 below week-ago levels. The weaker tone in the deferred futures, along with the stronger Canadian dollar, were the main factors weighing on feeder values. […] Read more
Canadian dollar likely to fall lower in value
'Ill-conceived' deficits don't help the economy in the long run
I’ve received many inquiries from cattle producers regarding the outlook for the deteriorating Canadian dollar. Many cattle producers don’t watch daily market activity and recently, we’ve seen sharper changes from week to week as the Canadian recession deepens. A dovish monetary policy from the Bank of Canada along with left-leaning fiscal policy from the ruling […] Read more
Retail specials helped sell some beef
Market Update with Jerry Klassen
The new year started off with a bounce in fed cattle prices with Alberta packer purchases in the range of $172 to $174, up from the December lows of $160. While fed cattle wholesale beef markets were declining throughout the fall period, retailers were holding up beef prices. However, during the first half of January, […] Read more
Klassen: Feeder market experiences defensive tone
Feedlot operators continue to pull in the reins on replacement cattle purchases because another month-end budget for the bank does not look healthy. Alberta sales barns experienced a soft tone, with sales $4 to $6 below week-ago while eastern Prairie regions received spillover support from U.S. markets. Manitoba markets were notably $3 to $8 higher […] Read more
Klassen: Feeders still vulnerable in financial market turbulence
Western Canadian feeder cattle prices experienced a defensive tone over the past week. Cattleman had their eyes glued to the equity market meltdown, which enhanced fears the fed cattle market would follow suit. Live cattle futures were on a roller coaster, and a late-week bounce in the Canadian dollar added to market uncertainty. Buyers were […] Read more