The April 2024 live cattle futures reached a contract high of $199.82/cwt on September 15. Since then, the cash and futures markets have been grinding lower and at the time of writing this article, the April live cattle contract was at $175.50/cwt. I’ve received many calls from feedlot operators inquiring about market direction for the […] Read more
Fed cattle supplies are not tight
Market Talk with Jerry Klassen
Klassen: Feeder market quiets at year-end
Feeding margins have moved into negative territory, setting a negative tone for replacements
The last full week of 2023 was characterized by lower volumes and limited buying interest. Feedlot operators don’t want to weigh down schedules of hired hands over the holidays. Many auction barns were closed for the season while some held bred cows and bred heifer sales.
Klassen: Feeder market ends year on mixed sentiment
Some feedlots becoming backed up with heavier cattle, setting negative tone for feed complex
Western Canadian feeder cattle markets were unchanged, to as much as $10 lower compared to last week.
Demand for heifers was suffering last week. A weaker tone was noted in the Eastern prairie regions as Ontario demand appeared to evaporate last week. Alberta packers were buying fed cattle on a dressed basis in the range of $368-$370/cwt, down $7-$8 from last week.
Klassen: Year-end buying interest boosts feeder market
Feedlot operators gearing up for shortfall in overall numbers in the first half of 2024
Strength was noted in calves under 650 pounds while feeders over 700 pounds were relatively unchanged. Larger packages of weaned quality genetics were $8 to $10 higher in some cases.
Cattle prices turning lower
Market Talk with Jerry Klassen
I’ve been overwhelmed with calls over the past week as the recent issue of Canadian Cattlemen reached dinner tables and coffee shops. In the October issue, I hinted that the cattle market was turning over and would likely trend lower in the latter half of 2024. I always judge how successful my articles are by […] Read more
Klassen: Feeder market bounces on lower volumes
Feedlot operators believe yearling numbers will be down in March and April
Strength was noted in Manitoba and Saskatchewan while a softer tone was evident in Alberta. Once again, buyers shrugged off the weaker feeder cattle futures and the focus was on filling year-end orders. Alberta and Saskatchewan feedlots are carrying larger numbers but there appears to be sufficient bunk capacity available to sustain the price structure.
Klassen: Strong demand continues to support feeder market
Significant downside risk ahead
For the week ending Nov. 25, western Canadian yearling prices were $4-$8/cwt lower compared to seven days earlier. However, calf markets were firm trading $5-$8/cwt on either side of unchanged compared to values quoted a week prior. Optimal weather in southern Alberta caused major feedlot operators to stretch their hands across the Prairies. At the […] Read more
Klassen: Canadian feeder buyers ignore weaker futures market
U.S. feedlot placements up four per cent
For the week ending Nov. 18, western Canadian feeder cattle prices traded $3-$5/cwt on either side of unchanged compared to seven days earlier. Buyers appeared to shrug off the weaker futures market and the defensive tone from a week earlier evaporated. Eastern Prairie markets were firm, with larger packages of quality cattle trading a solid […] Read more
Klassen: Cash feeder prices soften on futures market uncertainty
Supplies are higher than expected as consumers reign in spending
The live and feeder cattle futures appear to be incorporating a risk discount due to the uncertainty in demand. Consumers are pulling in the reigns on spending. Interest rates are at 40 year highs and inflation remains elevated. Larger supplies and lower demand results in lower prices.
Barley market update
Market Talk with Jerry Klassen
During the second week of October, southern Alberta feedlots were buying feed barley in the range of $330-$340/tonne delivered. In central Alberta, major operations were making purchases from $290-$335/tonne delivered. The barley harvest has wrapped up across Western Canada and producer selling appears to be easing. The market appears to be stabilizing at the current […] Read more
Canadian Cattlemen Presents: Depth of Field
