Fed cattle prices fell again last week as packers cut kills, reducing the need to buy cattle, Canfax said.
Low bids attracted few sellers and more cattle headed to the U.S., although the market weakened there too as packers struggled with losses.
Canadian price averages were $2-$4 per hundredweight lower than the week before. Trade volume fell 15 percent.
Alberta prices Feb. 9 on steers and heifers were $84.75-$89.35 per cwt., flat rail $148.25.
Feedlots supplies are far from burdensome.
Steer and heifer kill in Canada is down 30 percent to date. Many of those cattle have instead headed south, but as numbers increase into the second quarter, the balancing act will become more difficult, said Canfax.
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Packers are filling some of the kill space by processing more cows.
Beef prices fall
Cutouts struggled on all fronts, said Canfax.
In the U.S., Choice lost $5.70 US per cwt. while Select fell $2.65.
Similar pressure was noted in Canadian markets but was intensified by the stronger loonie.
Calgary wholesales were $7 Cdn lower for this week’s delivery, with steers $150-$151.
Feeders drop
All feeder cattle weight groups saw lower prices, but heavier animals lost more ground than lighter feeders, said Canfax.
Some of the weakness in lighter feeders was due to quality.
Steers 300-700 pounds were down 50 cents-$2 per cwt., with the exception of 400-500 lb. steers that traded $3.75 lower.
Heifers 300-700 lb. were steady to $2 lower.
The weak fed market pressured heavier cattle.
Steers 700-900 lb. and heavier fell $3.50-$3.75, while heifers of the same weight were down $1.75-$2.50.
Volumes through Alberta auctions increased 16 percent to slightly more than 47,000 head.
D1 and D2 cows gained $3.50 to average $34.69. Butcher bulls traded steady, averaging $30.42.
Based on seasonality and projected breakevens through the summer, heavier feeder cattle prices could drop lower, said Canfax.
The 850 lb. steer basis widened another $3.50 or more during the week. That could attract the interest of U.S. buyers if the trend continues.
Stock bred cows and heifers were mostly $650-$950, with tops to $1,400 on bred cows and $1,385 on bred heifers. Cow-calf pairs brought $550-$1,170 in central and northern Alberta.
Hog prices rise
Despite weak margins and slow pork sales, American pork plants bid higher for hogs last week.
Some of the gain in pork was attributed to demand from Mexico.
The composite pork carcass cut-out value rose to $59.27 US Feb. 10, up from $56.48 Feb. 3.
U.S. slaughter exceeded two million head for the fifth consecutive week, which is not typical as slaughter usually slows in February. The increased production could weigh on pork prices, said some analysts, and may eventually prompt a reduced kill, especially because pork plant margins were already in the red.
The Iowa-southern Minnesota live cash price for hogs delivered to plants firmed to $42.50 Feb. 10, up from $39-$39.50 per cwt. Feb. 3.
Federal slaughter in the United States was estimated at 2.03 million, the same as the week before, but up from the 1.98 million slaughtered in the same week last year.
Sheep steady to stronger
Ontario Stockyards Inc. reported 690 sheep and lambs and 31 goats traded. All classes of sheep, lambs and goats sold steady to stronger.
