Lower feed grain prices to drive feeder market higher

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

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


Given the tighter fundamentals for the 2022-23 crop year, the barley market must encourage acreage this spring.

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

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


Klassen: Feeder cattle market outlook

Klassen: Feeder cattle market outlook

Market Talk with Jerry Klassen

Feeder cattle markets in Western Canada have been trading near seven-year highs throughout the fall. Feeder cattle supplies are sharply below year-ago levels on both sides of the border. While supplies are tighter, demand from feedlots for replacement cattle has been significantly greater than last year. Finishing operators in Western Canada have been able to […] Read more

The Canadian barley crop is significantly larger than last year.

Feed barley market strengthens

Market Talk with Jerry Klassen

Statistics Canada’s August model-based crop estimate came in at 9.4 million tonnes, up from the 2021 output of seven million tonnes and up marginally from the five-year average of 9.2 million tonnes. Supplies are sharply higher than last year but the domestic feed market has rallied nearly $60/tonne from the pre-harvest lows. What is going […] Read more


Canadian Money

Monetary and fiscal policy weighs on Canadian dollar

Market Talk with Jerry Klassen

The Canadian dollar has been trending lower since making a seasonal high of just over 80 cents U.S. in early April 2022. At the time of writing this article, the Canadian dollar was nearing two-year lows of around 75 cents U.S. Canadian fed and feeder cattle exports are running sharply above year-ago levels and export […] Read more

Markets adjusting to barley, corn production estimates

Markets adjusting to barley, corn production estimates

Market Talk with Jerry Klassen

The western Canadian yearling market rallied $8-$10/cwt throughout August. While yearling prices were percolating higher, barley prices in Western Canada were grinding lower. Farmers started harvesting barley in southern Alberta during the third week of August and progress will accelerate across the Prairies through September. Most feedlots had their feed grain requirements covered with U.S. […] Read more


Feeder cattle outlook

Feeder cattle outlook

Market Talk with Jerry Klassen

Canadian feeder cattle prices have been percolating higher. Yearlings and calves are trading at levels not seen since 2014 and 2015. The USDA released their July 1, 2022 Cattle Inventory Report on July 23 which showed that the U.S. cattle herd continued to contract in the first half of 2022. Expectations are for a total […] Read more

Canadian barley market outlook

Canadian barley market outlook

Market Talk with Jerry Klassen

Old- and new-crop barley prices have been under pressure throughout the summer. For one thing, old-crop values have been softening due to a lack of demand. Most feedlots have sufficient volumes of corn booked through August until new-crop barley comes on the market. Second, farmer selling has increased. Falling prices tend to spur producer selling. […] Read more