Fed prices stronger
The fed cattle market finally sparked last week with price averages $3-$3.50 per hundredweight higher than the week before, thanks to good demand from packers, said Canfax.
Fed cattle exports fell back to about 17,000 head two weeks ago, the smallest since early September. Last week’s numbers might be smaller because of U.S. Thanksgiving.
Cattle feeders sold aggressively, cleaning up the showlist and even pulling some forward. Market-ready numbers are tight and pulling forward will help to keep the front-end supply tight.
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The volume traded rose seven percent to 21,000 head, Canfax said.
Alberta prices Nov. 23 were steers $85.50-$87.10 per cwt., flat rail $144.20-$145.30. No heifer trade occurred.
The basis narrowed to $12 under from $14 under. It’s still a long way from pre-BSE levels but it’s moving in the right direction and there might be more improvement in the next week or two, said Canfax.
However, the Canadian dollar strengthened last week, and that might make it difficult for the basis to narrow further.
Canfax expects sellers will be interested in moving cattle but the cold snap in the West and the active movement last week could lead to a small showlist this week.
That could add $1-$2 per cwt. to the averages.
Beef slips again
United States plants operated only three days last week. Choice and Select cutouts lost about 50 cents per cwt. from the week before.
Typically the cutout strengthens into the end of the year, Canfax said.
The Canadian cutout lost about $3.25 per cwt. on AAA while AA cutout was generally flat.
Struggling rib values dominated the trend although most cuts saw some price pressure.
The Calgary wholesale rose $2-$3 per cwt. for delivery this week with prices on handyweight carcasses at $142-$144.
Cows are making up a larger portion of the kill.
Optimism rises
Feeder markets had a firmer undertone last week with optimism in the fed market and manageable feeder volumes contributing to solid prices, said Canfax.
Most weight categories were steady to higher with the exception of 300-400 lb. steer calves, which were up $4.
Steers 400-600 lb. were steady to 50 cents higher, steers 600-900 lb. were up 50 cents-$1.75 and 900 lb. and heavier were down 50 cents.
Heifers 300-500 lb. were steady, 500-700 lb. were steady to 75 cents higher and heifers 700-900 lb. and heavier were steady to $1.50 higher.
Auction market volume fell to 66,000 head, 26 percent below last year.
Feeder cattle exports picked up, rising to 5,628 head exported for the week ending Nov. 18.
Butcher cows and bulls were 75 cents-$1.75 higher.
Outlook: Feeder cattle traded higher again near the end of the week.
With another strong week in the fed cattle market, higher feeder cattle futures and year-end tax dollars still floating around, trade should be solid.
In stock trade, bred cows dropped slightly with most selling at $700-$1,000 and tops to $1,280, plain types $310-$650.
Bred heifers dipped to $750-$1,050 with tops to $1,350 and plain types $350-$700.
Hogs stronger
Light hog deliveries in the U.S. because of Thanksgiving pressured packers to pay more.
Rising pork prices and strong plant margins gave packers room to raise bids.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $47 US per cwt. on Nov. 24, up from $42.50 Nov. 17.
The U.S. composite pork carcass cut-out value climbed to $67.27 US on Nov. 24, up from $65.31 on Nov. 17.
