Fed cattle rebound
The fed cattle market rebounded from the disruptions of the previous week, Canfax said.
Price averages were steady to slightly stronger than just before the border upset associated with the R-CALF court injunction.
Because packers bought few cattle the week before, they had to increase their buying to catch up.
Also, surprisingly strong U.S. cash cattle and beef markets supported the Canadian market. U.S. packer margins are positive, demand is strong and carcass weights are dropping.
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It took all week to settle the interpretation of the R-CALF injunction. Initially, it looked like trim could be blocked after being allowed into the United States since late last summer, Canfax said.
But on May 7 the U.S. Department of Agriculture and U.S. Customs agreed that Canadian trim could be imported. This was an important breakthrough because about half of the beef going to the U.S. has been trim. However, at the Western Producer’s deadline on May 10, there were still concerns about whether Canadian packers could conform to the additional rule that plants shipping trim slaughter only cattle younger than 30 months of age.
The week’s trade volume picked up to more than 23,000 head as producers liked the higher prices and packers built inventory, Canfax said.
Trade on May 6 was slow because there was still confusion about what meat could be shipped south. Steers on light trade were $84 per hundredweight,$141.65-$145 flat rail, heifers $84-$84.75, $143 flat rail.
Fed price direction will depend on border issues and whether meat buyers, facing increasing consumer demand as the weather warms, will give into higher wholesale prices.
Some analysts say the R-CALF injunction and USDA’s foul up in testing a suspected Texas animal with a central nervous system disorder may complicate and delay the border reopening.
With the trim problem partly settled, Canfax expected Canadian cut-out values would rise this week, supported by a stronger U.S. market preparing for barbecue season.
The U.S. cutout gained $2 US on Choice and $2.75 on Select last week. These cutouts are 18-20 percent higher than a year ago, Canfax said.
The Montreal wholesale price is steady at $151-$153 Cdn per cwt. and the Calgary market is $147-$150.
Feeder prices weaker
Alberta auction market volumes were down 51 percent from the week before due to the beef export market uncertainty. Still, about 30,000 head traded, 38 percent more than a year ago.
Average feeder steer and heifer prices were under pressure but gained strength at the end of the week, Canfax said.
Steers 300-500 lb. were $1.25-$2.75 per cwt. lower, 500-700 lb. traded down $3.50-$4 and 700-900 lb. and heavier were $5.25 lower.
Feeder heifers 300-400 lb. traded $2.25 lower, 400-600 lb. fell $7.75 and 600-700 lb. dropped $4.75.
Heifers 700-800 lb. fell $2.75, while 800-900 lb. and heavier were down $44.50.
D1, 2 cows plunged $5.50 per cwt. because of the new restrictions on slaughter of cattle older than 30 months of age.
Stock bred cows traded between $300-$600 on low quality and $600-$1,000 on good quality. Bred heifers in northern Alberta brought $375-$750 on light trade. Cow-calf pairs, depending on quality and age, traded at $500-$1,200.
Hog prices strong
Hog and pork prices soared last week as the USDA pork cut-out value hit its highest level since data collection began in August 1998.
The pork carcass cut-out value rose by $4.19 US per cwt. to $79.13 on May 6.
The decreased supply of market hogs and tight packer margins is causing some packers to reduce shifts and limit output, pressing pork prices higher.
Packers had to bid higher to get hogs.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) increased to $58.58 cwt. on May 6 from $56.97 May 3. The average hog price increased about three percent.
Lean hog futures prices and pork belly futures also rose, with many months setting life-of-contract highs.
The bad news for Canada was that the U.S. International Trade Commission ruled that Canadian hog imports threaten U.S. farmers, meaning the U.S. commerce department can continue its month-old investigation of Canada’s trade practices that may result in anti-dumping and countervailing duties on Canadian hogs.
Sheep, goats down
At Ontario Stockyards, 2,276 sheep and lambs and 259 goats traded. Light lambs sold up to $20 cwt. lower, while heavy lambs and sheep traded $10 cwt. lower. Goats held firm. All prices in dollars per cwt.
New crop lambs, $109-$140, highs to $165.
Lambs, 65-80 lb., $111-$137, high to $155; 80 to 95 lb., $90-$130, high to $139; over 95 lb. $90-$111, high to $124; over 120 lb., $75-$111.
Feeder lambs, $110-$135.
Sheep $40-$50, high to $61. Plainer types, all weights, $25-$40. Rams, $43-$60.
