Fed cattle weaken
Fed cattle prices were steady to 75 cents per hundredweight lower last week with good buyer interest. A smaller show list helped to support the market, Canfax said.
There was good U.S. buying interest with cattle exports up 10 percent from the week before at about 21,000 head.
Cattle feeders sold aggressively. Volume was 24,000 head, up 13 percent from the week before.
Alberta prices Feb. 2 were steers $85.40-$86.80 cwt., flat rail $145.75-$146.20. No heifer trade occurred.
Canfax said feedlot offerings should be manageable in coming weeks, helping maintain a steady market, as would larger kills.
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The basis narrowed to $14.09 under due to lower U.S. cash trade and higher Canadian trade.
Canadian beef stronger
Canadian packers increased kills in the last few weeks, but business remains steady.
Canadian cut-out prices rose with AAA up $3.82 to $173.43 and AA up $2.50 to $164.01.
The AAA-AA spread widened to $9.42.
Calgary wholesale prices for delivery this week were steady at $145-$147.
U.S. cutouts fell sharply with Choice down $6.26 US at $142.31 and Select down $2.98 at $134.55.
The U.S. Choice-Select spread narrowed to $7.76, down $3.28 from the week before.
U.S. packers were likely preparing for Super Bowl Sunday on Feb. 4 with box beef movement up 32 percent, Canfax said.
Feeders mixed
Auction market volume slowed last week with about 42,000 head sold.
That was 12 percent smaller than the week before but two percent larger than last year.
Feeder cattle exports totalled about 12,000 head for the week ending Jan. 27, up 81 percent from the week before and up 11 percent over last year.
Feeder trade was mixed. Light cattle lost ground with 300-600 pound steers down 25 cents-$1 Cdn and 600-800 lb. steady to $1 higher.
Heavy feeder steers were steady and heifers were 75 cents-$3.25 lower.
Butcher cows were steady to $1 lower and butcher bulls were 75 cents lower.
The weaker dollar should stimulate American interest in Canadian feeder cattle. Canfax expects the market will trend steady to lower depending on quality and buyer interest.
Auction market volumes should start to pick up in the coming weeks.
Butcher cows may see some recovery with larger than normal cow kills reported.
Light offerings in stock cow trade saw prices steady to lower.
Bred cows were $750-$1,000 with tops to $1,175 and plain types $300-$650. Bred heifers were $750-$950 with plain types $400-$650.
Cow-calf pairs were $675-$750.
Hog prices up
U.S. hog prices rose last week as packers bid to obtain supply from farmers reluctant to ship in cold weather.
However, poor margins put a cap on how high packers pushed.
The Iowa-southern Minnesota live cash price for hogs delivered to plants were $47.50 US per cwt. on Feb. 2, up from $46 Jan. 26.
The U.S. composite pork carcass cut-out value was $63.83 per cwt. Feb. 2, down from $64.72 on Jan 26.
Federal slaughter in the United States during the week was estimated at 2.04 million, down from 2.08 million the week before.
A wage dispute between Olymel and its staff at Quebec’s largest slaughter plant came to a head last week with workers rejecting a wage rollback and the company promising to close the plant by May 25. The province ordered a mediator.
Bison steady
Carcasses from top quality bison bulls younger than 30 months in Canada in the desirable weight range were steady at $1.65 to $1.85 Cdn per lb. with a weighted average of $1.74 per lb., said the Saskatchewan Bison Association.
Rail prices for quality youthful bulls older than 30 months ranged from $114-$145 per cwt. Cull cow prices were 10 to 15 cents per lb. live weight.
The U.S. Department of Agriculture reported Jan. 10 that hot carcasses from bulls younger than 30 months were $170-$190 US, with an average of $182.23 during December, up $2 from the month before. Heifers averaged $166.24
Sheep mostly steady
For the week ending Feb. 2, Ontario Stockyards reported 1,017 sheep and lambs and 32 goats traded.
Sheep and goats sold at steady prices while lambs were $5-$10 Cdn per cwt. higher.
