New BSE case
Canada confirmed a new case of BSE Jan. 23. American agriculture secretary Mike Johanns said he expected no change in the status of beef or cattle imports from Canada.
Futures markets dropped Jan. 20 when Japan again closed its market to U.S. beef after receiving a shipment with banned bone material.
Cash fed cattle rise
In Canada, fed cattle cash weekly averages rose $1.75 per hundredweight over the week before, with the strongest trades occurring midweek, said Canfax.
By the close of Jan. 19, prices had weakened.
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The weekly volume was more than 24,500 head, up 42 percent from the week before.
U.S. buying was strong on longer fed cattle thanks to the weaker Canadian dollar.
Prices Jan. 19 in Alberta were steers $93.25-$95 per cwt., flat rail $158-$158.10 with no heifer trade occurring by the close.
Beef slow in early January
Canadian cutouts lost ground in early January with AAA down $5 per cwt. to $174 and the AA down $2.
This follows on the heels of a $178 average for December. Although down, the cutout is still nine to 10 percent higher than a year ago.
U.S. cutouts rose with Choice up $3.50 US and Select up $3 compared to the week before.
Packers have slowed their lines, reducing the amount of beef available, but they might reduce kill further because supply is still considered more than adequate, Canfax said.
Calgary wholesale prices for delivery this week are steady to $3 higher at $160-$165.
Heavy steers down
The increase in heavier feeder cattle moving through Alberta auction markets last week put pressure on steer prices. Steers 800-900 pounds and heavier fell $1.75 as buyers forecast a sluggish summer fed market.
Lighter cattle were fully steady to $3.50 stronger with lots of buyers.
Slightly more than 37,000 head sold during the week, 50 percent more than the week before.
Heifers traded steady to higher with the 500-700 lb. category rising the most.
Slaughter cows were under pressure, trading $1.75 lower. Butcher bulls were steady with a week ago.
Canfax expects steady to larger volumes will trade in February. Heavier feeder cattle are expected to be under pressure, while lighter feeder cattle could see a steady to stronger market with buyers looking for grass cattle. Slaughter cows are expected to trade flat in the next couple of weeks before strengthening on slightly tighter supply through the spring, said Canfax.
Stock bred cows saw prices of $600-$950 with tops to $1,325. Bred heifers were similar with tops to $1,350. Cow-calf pairs in central and northern Alberta brought $700-$1,300.
USDA cattle on feed
A slower-than-expected rate of feedlot cattle marketings in December and a record number of cattle on feed as of Jan. 1 were expected to weigh on nearby futures but support summer prices.
The United States Department of Agriculture reported the December marketing figure at 97 percent of the previous year and placements at 103 percent of last year.
The Jan. 1 on-feed number for feedlots of 1,000 head or more was at 104 percent compared with the average estimate of 104.6 percent, a new record for the month.
The on-feed supply made analysts nervous, especially with the current Japanese import problem, Reuters reported.
“The futures market is trading cattle higher than last year and we’ve got four percent more cattle on feed that are going to come to slaughter,” said Ron Plain, agriculture economist at the University of Missouri.
“You have to look at how are we going to maintain this combination of more cattle to be killed and higher prices when it looks like exports could disappoint given the Japanese situation.”
Hog prices close steady
Mild weather across North America is leading to heavier than normal hog weights that are adding to pork supplies and depressing prices.
U.S. hog prices in the Midwest dropped $2 US per cwt. or more early in the week, but as packer margins began to improve later in the week, they raised bids.
Analysts also attributed the weight gain to futures being at a premium to cash, prompting producers to hold back shipments.
Federal plants slaughtered about 2.11 million head in the U.S. in the week ending Jan. 21 up from 2.07 million the week before, and up from the 1.99 million processed in the same week last year.
The Iowa-southern Minnesota live cash price for hogs delivered to plants dropped early in the week, but climbed back to $40-$40.50 on Jan. 20, steady with prices on Jan. 13.
The USDA composite pork carcass cut-out value was $60.53 per cwt. on Jan. 20 down from $61.28 per cwt. Jan. 13.
Lamb prices mixed
Ontario Stockyards reported 1,292 sheep and lambs and 195 goats traded last week.
Light lambs and sheep saw prices $10 cwt. lower, while heavy lambs fell $15 cwt. Goats sold at barely steady prices.
Beaver Hill Auction at Tofield, Alta., reported 240 head of sheep and goats sold Jan. 19 at steady prices.
Lambs 70 lb. and lighter were $137-$150 per cwt., 70-85 lb. fetched $140-$148, 86-105 lb. were $133-$140 and 105 lb. and heavier $122-$126.
Replacement ewes were $70-$76 per cwt. Rams $57-$94 and cull ewes were $52-$68 per cwt.
Good kid goats were 55-80 lb. $159, nannies at $40-$69 and mature billies at $110-$140.
