The May feeder cattle futures have developed a pattern. The market rallies and then consolidates for nearly a month before making another leg higher. This pattern is expected to continue.	SOURCE: DTNPROPHETX

Feedlot margins boost feeder cattle market

Feedlots are expected to bid up the price of feeder cattle so that margins in the deferred positions cover variable costs

For the week ending Jan. 11, western Canadian feeder cattle prices were up $15-$20 per hundredweight compared to the week ending Dec. 21. In eastern Saskatchewan and Manitoba, quality packages of steers 800 pounds and heavier traded $20-$25 per cwt. higher compared to three weeks earlier. Alberta packers were buying fed cattle on a dressed