Klassen: Feeder cattle market starts 2026 with stronger tone

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For the week ending January 10, Western Canadian feeder cattle markets were up $8-$10/cwt on average compared to three weeks earlier. Strength was noted in backgrounded pre-conditioned replacements weighing 700 pounds plus. Quality genetic packages with full processing were up $20/cwt in some cases.

The weather was quite variable and feedlots have experienced above normal cases of pneumonia over the past month. Feedlot operators were willing to pay premiums on vaccinated feeders.

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Ontario buying interest set the price structure in many cases with orders stretching into north-central Alberta.

The TEAM Auction report had medium to larger frame Fleckvieh Simmental-cross red steers averaging 1,020 pounds with full processing records on backgrounding silage and barley diet valued at $450 fob farm near Carrot Creek, Alberta. Southeast of Edmonton, a farmer reported a larger package of Angus cross heifers averaging 925 pounds on backgrounding ration with full health data were valued at $430/cwt fob farm.

The Yorkton pre-sort sale included a smaller package of medium to larger frame black steers averaging 866 pounds that traded for $499/cwt. In central Alberta, a buyer reported a smaller package of medium flesh mixed heifers with a scale weight of 820 pounds moved through the ring at $482/cwt.

The Clyde pre-sort sale had a group of 49 black, medium to larger frame steers weighing 737 pounds that traded for $539/cwt. At the same sale, a group of Simmental cross heifers weighing 729 pounds sold for $496/cwt.

Northwest of Calgary, a rancher reported that a group of 70 Charolais weaned steers evaluated at 610 pounds with full processing records sold for $640 fob ranch. The Lloydminster pre-sort sale included a package of 12 red heifers averaging 619 pounds that sold for $551/cwt.

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At the Vermillion sale, smaller package of exotic steers averaging 546 pounds traded for $690. At the same sale, a group of 26 black steers on the card at 492 pounds were last bid at $746/cwt.

Feedlot margins have been in red ink over the past month but there is an optimistic view moving forward. The industry is bracing for a sharp year-over-year decrease in U.S. beef production during the second quarter of 2026, which is driving the nearby feeder market higher.

I’m hosting a hot lunch and cattle market outlook for cow calf producers and feedlot operators in Lethbridge on January 26, 2026. Cattle buyers are also welcome. Call Jerry at 204-504-8339 by January 17 to book your spot.

About the author

Jerry Klassen

Jerry Klassen

Jerry Klassen graduated from the University of Alberta in 1996 with a degree in Agriculture Business. He has over 25 years of commodity trading and analytical experience working with various grain companies in all aspects of international grain merchandising. From 2010 through 2019, he was manager of Canadian operations for Swiss based trading company GAP SA Grains and Products ltd. Throughout his career, he has travelled to 37 countries and from 2017-2021, he was Chairman of the Canadian Grain and Oilseed Exporter Association. Jerry has a passion for farming; he owns land in Manitoba and Saskatchewan; the family farm/feedlot is in Southern Alberta. Since 2009, he has used the analytical skills to provide cattle and feed grain market analysis for feedlot operators in Alberta and Ontario. For speaking engagements or to subscribe to the Canadian Feedlot and Cattle Market Analysis, please contact him at 204 504 8339 or see the website www.resilcapital.com.

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