General movement toward higher production

Market Update: Feeder cattle prices may not get much better than they are right now

Fed cattle prices were hovering in the range of $158 to $160 in mid-February, slightly lower than month-ago levels. The markets are relatively strong and I’m expecting the yearly highs to occur over the next month. First-quarter beef production is coming in marginally lower than anticipated, but supplies are building. The recent cattle-on-feed report and […] Read more

Understanding feeder cattle risk: Pt. 2

Market Update with Jerry Klassen: You don’t want to be using marketing tools to lock in a loss

The feeder cattle market has experienced extreme volatility over the past three years. For this reason, I’ve been writing on managing financial risk for feeder cattle and particularly for backgrounding operations and cow calf producers. In the first column, I discussed the mechanics of hedging, explained historical basis levels and using these basis levels to […] Read more


(Photo courtesy Canada Beef Inc.)

Klassen: Feeder cattle drop on cautious feedlot demand

Western Canadian feeder cattle markets traded $3 to as much as $8 below week-ago levels as feedlot managers anticipate growing beef supplies during the late spring and summer. Heavier weight categories absorbed the brunt of the selling pressure, with backgrounding operators liquidating fall-placed calves. Certain groups of higher-quality heifers held value with the purpose of […] Read more

Understanding feeder cattle risk: Pt. 1

Market Update with Jerry Klassen: A hedging program can remove some of the uncertainty

In the January 24 Grainews issue, I explained the feeder cattle futures market and the simple mechanics of hedging feeder cattle. In this column, I want to take one step further and discuss the financial risk associated with backgrounding or selling feeder cattle. Read more: Important to understand the futures Read more: Producers hit with […] Read more


Short-term gains, long-term pains

The market still needs to discourage beef production — and that hurts

Fed and feeder cattle prices have been percolating higher recently as the markets adjust to lower-than-expected first-quarter beef production. Alberta fed cattle prices have been hovering in the range of $162 to $165, which is approximately $25 above break-even pen closeout values. Healthy feedlot margins allowed feedlots to bid up feeder cattle prices. Larger-frame steers […] Read more



(Photo courtesy Canada Beef Inc.)

Klassen: Feeder cattle prices lukewarm on mixed factors

Western Canadian feeder cattle markets were steady to $2 higher compared to week-ago levels. All weight classes experienced lukewarm buying interest, despite improving margins in the feedlot sector. Most auction barns experienced minimal numbers; cow-calf producers are holding back on sales hoping for stronger values and extreme cold temperatures hindered cattle movement, especially in the […] Read more

(Photo courtesy Canada Beef Inc.)

Klassen: Winter conditions weigh on feeder market

Western Canadian feeder cattle prices traded steady to $3 lower compared to seven days earlier. The market tends to soften during the first major snowstorm each year, but the established risk discount was not as severe as in past years. Notwithstanding the cold temperatures and adverse weather conditions, feedlot operators continued to step forward fairly […] Read more


cattle in a feedlot

Market recovery still a year away

Market Update: Production is still high, start of beef herd contraction possible in late 2017

On top of the CBOT building in Chicago stands a statue of “Ceres” — the Greek goddess of grain crops and fertility. An old myth amongst traders is that after a major bull run in a market when traders usually did very well, the Greek goddess wanted her money back. Fed cattle prices have been […] Read more

Photo: File

Six risk factors for BRD in feeder calves

There are many factors to consider to minimize BRD (bovine respiratory disease) when bringing in feeder calves. Knowing the history of the calves at weaning time, distance transported, vaccination and health history, as well as upcoming weather conditions will help you determine the level of risk. In bringing in calves, or for that matter feeding […] Read more