Injunction hits fed prices
The U.S. injunction stopping the March 7 border reopening knocked the legs out from under the fed cattle market.
Prices March 3 were $9 per hundredweight lower than Feb. 24, said Canfax. The week started with prices similar to the close of the previous week, but started dropping after the injunction was granted March 2.
Volume was up 13 percent to more than 21,000 head due mainly to the strong trade before the announcement, said Canfax. Fall-placed calves were in the slaughter mix.
Alberta prices March 3 in limited trade saw steers bring $80-$83.70 per cwt., flat rail $131.75-$136.20 and heifers $81.85, flat rail $136.50-$138.
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Cattle supplies are technically no different than they were before the announcement, but with access to the U.S. market again plunged into uncertainty, sellers have less bargaining power. Also, Canadian packers are back in the position of not having competition.
With so much uncertainty clouding the picture, producers need to get acquainted with the federal set-aside program again, said Canfax.
Beef prices weaken
Cut-out values in Canada two weeks ago were $2-$2.50 per cwt. lower compared to the prior week but were $9.50 higher on the AAA compared to one year ago and $6.25 higher on the AA.
U.S. cutouts rose $2-$2.75 last week when it became clear Canadian cattle would not cross the border.
Seasonally, beef prices usually start to move higher, especially middle meats, but packers report retail buyers are taking a wait and see attitude, Canfax said.
The Calgary wholesale market for this week’s delivery is $4-$5 lower with handyweight steers at $150-$152.
Feeders mixed
The feeder price averages reflect mostly the trade that took place early in the week, said Canfax. Most auction markets reported lower sales after the announcement of the injunction.
Alberta auction market volumes were 16 percent larger with about 52,500 head trading. That was 77 percent more than the same week last year.
Steer averages were mixed with 400-700 lb. trading steady to $2.50 higher, while 700-900 lb. were $2-$3.75 lower. Heifers 400-500 lb. brought steady money and 500-900 lb. and heavier fell $1.50-$3.
D1, 2 cows rose $6, averaging $33.25 with tops of $47.50 as more speculative buyers took part. Butcher bulls were also $3.50 higher.
Lower prices in the fed market will likely trickle down to feeders and volumes are anticipated to back off as producers balk at lower prices, said Canfax.
Cull cows appear to be the hot market currently, partly due to seasonality, but this market may be pressured as volume increases after calving
season.
Also, with the border still closed, there is only one federally inspected cow plant in the West.
Stock bred cows brought $700-$1,225 on excellent quality and $350-$700 on medium quality.
Bred heifers in southern Alberta brought $850-$1,200 while in northern Alberta they were $450-$925.
Hog prices rise
Hog prices rose again last week. They started out weaker in the U.S. as packers cut back a bit on their kill schedules to try to pressure pork prices higher and improve their margins.
It worked and cut-out values rose. By mid-week packer bids started to strengthen.
The average Iowa-Minnesota daily direct hog price (51-52 percent lean carcass converted to live weight) was $55.68 a cwt. on March 3. The wholesale cut-out price increased by about $3.32 US to $68.85 per cwt.
Manitoba slaughtered 723,000 pigs during the first eight weeks of 2005, 8.5 percent more than last year, but below the record set in 2003 of 724,000.
For the week ending Feb 25, Manitoba five-kilogram pigs received top bids of $72 per pig while contract highs were $48.60. Spot prices for 23 kg pigs peaked at $105 per pig and tops for contracts were $102.16. The U.S. national direct delivered price for five kg pigs (converted to Canadian dollars) was $38.39-$79.25 per pig and 23 kg pigs were $69.34-$108.97.
Lamb prices up
Ontario Stockyards inc. reported 1,337 sheep and lambs and 176 goats traded. Light lambs prices rose $5-$10 cwt. All other lambs, sheep and goats sold steady.
