Western Producer Livestock Report

Fed cattle lower in slow trade

The fed cattle trade started slow in the new year with little activity until Jan. 5 and then prices were lower.

The weekly average fell $2 per hundredweight on steers and $3.50 per cwt. on heifers, said Canfax.

Sellers were not attracted by the lower bids leaving the week’s volume at slightly more than 18,000 head, down 24 percent from the previous week.

A wide range of days on feed (from 90-225) meant large variances in yield, Canfax said.

Alberta prices Jan. 6 were steers $82.50-$85 per cwt., flat rail $142 and heifers flat rail $142.

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Producers are reluctant to sell at the lower prices but with kill plants running only four days a week or on reduced hours, and market-ready supplies increasing through January, more price pressure can be expected.

This week will see the first of the fed set-aside cattle released from the program. Although about 2,000 were set-aside three months ago, the number that followed that first week is unknown. However, cold weather could reduce the number of cattle going to market.

Canfax expected prices to be in the mid to low $80s this week.

Beef movement slow

The recent smaller kills emphasize the fact that beef movement is not as good as it was, Canfax said.

Seasonally, movement is slow and news that Tyson planned to suspend operations at five of its U.S. plants underlined the issue of packer profit margins.

Last week’s Canadian cutouts were up to $3 per cwt. lower on AA and AAA.

U.S. cutouts stabilized a bit last week. Select was down $1 while Choice was steady.

Reductions in kill couldn’t spark higher cutouts.

Calgary wholesale beef is $3-$4 lower for this week’s delivery in a range of $140-$142.

Feeder trade light

Fewer than 2,500 head traded last week, down 55 percent from the week before and 26 percent less than a year ago.

Feeder steers and heifers generally were higher except for 300-500 lb. steers that were $1.75-$2.50 per cwt. lower and 300-400 lb. heifers that were $3 lower in light trade.

Steers 500-700 lb. traded $8.25-$8.75 higher, while 700-800 lb. steers were up $2.75.

Steers 800-900 lb. and heavier were $5.25-$5.75 higher.

Heifers 500-900 lb. were $6.50-$9.75 higher than last trade, while 900 lb. and heavier were $1.75 stronger.

D1, 2 cows held steady with pre-Christmas prices at $20.50 per cwt. and butcher bulls were about $16.75.

With cold weather expected this week, volumes are expected to be light.

The prospect of an open border should attract more buyers. There was no stock cow trade to report last week.

Hogs climb

Live hog prices rose in Canada and the United States, said Manitoba Agriculture.

Reduced hog deliveries because of cold and storms and lower packer margins contributed to a drop of about 11 percent in U.S. federal slaughter.

The average Iowa-Minnesota daily direct hog price (51-52 percent lean carcass converted to live weight) increased by about three percent from Jan. 3-6, climbing to $56.01 US per cwt. from $54.63.

The wholesale cut-out price of $74.03 per cwt. was $2.97 per cwt. higher than the week before. Higher prices for hams and loins were primarily responsible for the higher cut-out prices.