
Market talk

Is the economy at the peak of expansion?
Market Talk with Jerry Klassen
When I started writing for Canadian Cattlemen many years ago, I had the pleasure of talking to an old-time cattle feeder. He gave me some extraordinary wisdom. He stated if you want to be a successful analyst in the cattle market, you need to focus on economy and consumer spending. Since the recession in 2020, […] Read more

Feeder cattle outside finishing feedlots
Market Talk with Jerry Klassen
Feeder cattle prices in Canada and the U.S. have been trading at or near historical highs. I’ve received many phone calls and emails from cow-calf producers and feedlot operators inquiring about further upside in the feeder cattle complex. Recently, the USDA and Statistics Canada released their semi-annual cattle inventory surveys. The cattle herd remains in […] Read more

Production uncertainty drives feed grain markets
Market Talk with Jerry Klassen
Barley and corn prices have been extremely volatile over the past month. Large regions of Western Canada are experiencing drought-like conditions. At the same time, crop ratings for the U.S. corn crop reflect yield uncertainty in the Midwest. I’ve received many inquiries from feedlot operators and cow-calf producers regarding the price outlook for corn and […] Read more

Feeder cattle market functions to encourage expansion
Market Talk with Jerry Klassen
In the September 6, 2022 issue of Canadian Cattlemen, I wrote an article stating that fed cattle numbers were expected to be extremely tight in the first half of 2023. I included a chart projecting that the feeder cattle futures would reach historical highs in October and November of 2023. Over the past couple of […] Read more

Canadian barley outlook
Market Talk with Jerry Klassen
Statistics Canada’s acreage survey of 9,500 farmers was conducted between December 12 and January 14, 2023. Survey results were released on April 26. Commodity and fertilizer prices have changed significantly since winter. Although the data may be out of date, traders are using it as a starting point to project upcoming production. On the winter […] Read more

Higher interest rates to curb beef demand
Market Talk with Jerry Klassen
Interest rates in Canada and the U.S. have been increasing over the past year as central banks work to bring down inflation. The Bank of Canada and the U.S. Federal Reserve started their policy of monetary tightening in March 2022. One year later, the U.S. Federal Reserve’s benchmark rate was at 5.0 per cent while […] Read more

Lower feed grain prices to drive feeder market higher
Market Talk with Jerry Klassen, from the April 2023 issue of Canadian Cattlemen
I’ve received many calls over the past month regarding the price outlook for Canadian barley and U.S. corn. Alberta cattle feeders have relied on imports of U.S. corn over the past couple of years. Canadian barley supplies have been extremely tight over the past two years. The drought of 2021 resulted in a sharp decline […] Read more

Cattle herd poised to expand while economy cools
Market Update with Jerry Klassen: A small change in supply has a large influence on the price
Several studies from universities in Canada and the U.S. analyze the financial returns for feedlot operations. Feeding cattle is a pure competitive market. One characteristic of a pure competitive market is that the margins drop to the least-cost producer. In the long run, the margins are negative. Two other characteristics are unique to the cattle […] Read more

Barley market overview
Market Update with Jerry Klassen: The barley market must encourage acreage this spring
Cow-calf producers are wondering how changes in the feed grain complex will influence the feeder market. At the same time, feedlot operators are wondering if they should take coverage in the deferred positions. I thought this would be a good time to provide an overview of the barley market. Canadian barley fundamentals are snug and […] Read more

Characteristics of the cattle market
Market Talk with Jerry Klassen
Every year, I am a guest lecturer to a third-year agriculture economics class at the University of Manitoba. During the lecture, I provide an overview of the fed cattle market. More recently, I was having a discussion with feedlot operators, and they asked about the key to successful marketing and profitability for the feedlot operator. […] Read more