Western Canadian feeder cattle prices were $2 to $4 per hundredweight (cwt) higher last week on average. Deferred live cattle futures made fresh contract highs on Friday, resulting in steady demand in the feeder complex. Run-of-the-mill steer calves weighing 575 pounds averaged $160/cwt in central Alberta; calves averaging 650 lbs. brought back $155/cwt. The April […] Read more
Klassen: Feeder prices continue the climb
Klassen: Feeders maintain upward trend
Heavier feeder cattle were steady to $2 per hundredweight (cwt) higher last week while calves under 600 pounds were up as much as $2 to $3 in some instances. Despite the softening of the nearby fed market, buying interest for feeders improved as the April and June live cattle futures made fresh contract highs. A […] Read more
Cattle Prices Remain Vulnerable
Canadian cattle prices held value throughout September but the market feels vulnerable moving forward given the weak economic environment. Alberta packers bought fed cattle in the range of $100-104/cwt in the early fall period. At the same time, prices in the U.S. Southern Plains were hovering between $116-$118/cwt. U.S. cattle on feed numbers continue to […] Read more
Klassen: Fed cattle lead feeders higher
The weaker Canadian dollar, along with stronger beef prices and lower market-ready supplies, caused fed cattle to jump $4 per hundredweight (cwt) last week. Alberta packers paid up to $111/cwt in a struggle to fill nearby demand. Feeder cattle prices followed suit, edging up $2-$3/cwt on average, with lighter-weight cattle up as much as $5/cwt […] Read more
Klassen: Weaker corn, softer dollar strengthen feeder cattle
Western Canadian feeder cattle prices were $2-$3 per hundredweight (cwt) higher last week on average. Strong demand was noted on all weight categories, with heavier replacements sometimes up $3-$4/cwt. A group of red and black Angus-based steers weighing 920 pounds with no special qualities sold for $123/cwt in central Alberta. A similar group of cattle […] Read more
The Basics Of Using Put Options
I ve had many inquiries over the past few months about hedging feeder cattle using options. Last winter, I wrote an article on using futures markets to hedge feeder cattle, but many producers are hesitant to take an outright futures position given the potential for margin calls. Many producers experience extremely tight cash flow during […] Read more
Klassen: Feeder cattle shrug off recessionary fears
Feeder cattle prices across Western Canada were steady to $2 higher on average with stronger demand surfacing in the lighter weight categories. Pee-wee steer calves under 350 pounds sold for $186 per hundredweight (cwt) in central Alberta, which is near all-time record highs for any weight category. Black Angus-based age-verified steer calves averaging 528 lbs. […] Read more
Klassen: Prairie feeder prices strengthen, U.S. prices soften
Western Canadian feeder cattle prices were up $1-$3 on average last week as major feedlot operators were more aggressive to secure nearby supplies. Steers in the range of 700 to 800 pounds averaged $140 per hundredweight (cwt); yearlings in the 800- to 900-pound category averaged $130-$132/cwt while replacement cattle over 900 pounds brought back $125/cwt. […] Read more
Klassen: Feeder cattle market poised to consolidate
Western Canadian feeder cattle prices were steady to $2 lower last week as weaker fed cattle prices and stronger feedgrain values set a negative tone. Wholesale beef prices have come under pressure due to weaker consumer confidence and softer equity values. Labour Day beef demand was somewhat disappointing and retailers were discounting ground beef in […] Read more
Klassen: Feedgrain costs influence feeder prices
Western Canadian yearling prices were $2 higher to $3 lower in comparison to seven days earlier, while feeder cattle under 700 pounds were relatively unchanged. Major feedlots continue to set the tone, paying light premiums for good-quality age-verified cattle. This caused an uneven tone and regional differences were also noted. Prices in southern Alberta were […] Read more
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