Slaughter cattle down
Fed cattle trade in the week before Christmas was fairly quiet with prices $1.50-$2.75 per hundredweight lower, said Canfax.
In light trade Dec. 20, steer prices were $2.75 per cwt. lower than the week before and heifers were off $1.25.
The Canfax weekly average for steers was $83.39 per cwt., down $1.62 and the heifer average was $83.55, down $1.15.
The Alberta to U.S. cash basis was $6.10 under.
Sale volume was about 14,000 head.
Fed cattle exports to the U.S. totalled 16,988 head. Exports in the year to date totalled 778,386, up 15 percent from last year.
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Canfax said fed prices normally trend lower in the first quarter. Early in January, packer interest could improve due to short supply and may maintain fed prices until the middle of the month.
Weekly basis levels are expected to be narrower than the previous year throughout most of the first quarter of 2008. Canfax said the combination of decreased placements by Alberta feedlots during the latter half of 2007 and large feeder cattle export volumes should keep fed cattle supplies in the West relatively tight.
The Dec. 1 cattle-on-feed report showed Alberta and Saskatchewan had only 987,402 head on feed. Other than 2003, that was the smallest Dec. 1 total in the report’s history.
U.S. on-feed report
Cattle futures prices dropped after the U.S. Department of Agriculture reported recently that the Dec. 1 U.S. feedlot cattle supply was 101 percent of a year ago, or 12.081 million head. That was more than the average trade estimate of 99.3 percent and it was larger than all estimates in a Reuters survey.
USDA also reported November marketing at 97 percent, compared with the average trade estimate of 98.1, and it put November placements at 112 percent, compared with the trade average of 104.4.
Beef price slips
Canadian packers ran reduced schedules due to the holidays. Buyers will be purchasing for post-holiday needs, which usually means more of the cheaper end cuts and less of the expensive middle meats, Canfax said.
The Calgary wholesale market for delivery the final week of the year was called $1 lower at $141-$142.
In the U.S., the Choice cutout edged higher by 52 cents to close the week at $147.77 US while Select closed $4.43 higher at $136.43. The Choice-Select spread was $11.34 compared to $15.24 the week before.
Cut-out values were expected to be supported from reduced slaughter levels over the holidays.
Feeders lower
Feeder cattle prices dropped $3 Cdn per cwt. in the week before Christmas, said Canfax.
Auction volume fell 10 percent from the previous week to 60,722 head. That was down one percent from the same week last year.
All weights of steers, with the exception of the 400-599 pounds range, were $3-$3.50 per cwt. lower. Steers and heifers 400-599 lb. dropped $2-$2.75.
Heifers 300-400 lb. fell $1.25. Heifers 600-900 lb. and heavier fell sharply with prices $3.50-$4.50 lower.
Exports to the U.S. in the week ending Dec. 14 were 15 percent higher than the previous week, with 22,109 feeders moving south, the largest volume of the year.
Slaughter cows were 25-50 cents per cwt. higher than the week before. Butcher bulls rose 50 cents.
Volume through the holiday period was expected to be light. Canfax expects feeder prices to soften in January.
In stock cow trade, slaughter cows and butcher bulls were expected to trade steady into January.
Surplus of hogs
The USDA hogs and pigs report released Dec. 27 showed the U.S. herd up by 4.2 percent over last year at the same point. Also, hog numbers were expected to be higher than expected through 2008, meaning more tough times for Canadian hog producers, who are also struggling with the strong dollar.
The U.S. posted a record large hog slaughter in the week before Christmas.
Iowa-southern Minnesota cash hogs traded at $38 US per cwt. Dec. 28, the same as Dec. 21.
The U.S. composite pork carcass cut-out value closed at $58.53 Dec. 28, up slightly from $58.04 on Dec. 21.
U.S. slaughter for the week ending Dec. 22 was estimated at a record 2.45 million, up 3.8 percent over the previous week and 10.3 percent more than the same week the year before.
Bison report
The Canadian Bison Association did not have a price report for the last week of December.
Agriculture Canada reported that to the week ending Nov. 24, 17,321 bison had been slaughtered in federally inspected plants, up 14 percent over last year at the same time. To the end of November, 7,812 slaughter males and 5,249 females had been exported to the U.S., an increase of 32 percent for the former and 96 percent for the latter over the year before.
The U.S. Department of Agriculture reported Dec. 11 that younger-than 30-month bull hot carcasses were $195-$210 US, with a weighted average of $204.26 per cwt. during November, up $3.58 from the month before.
Heifers averaged $190.62, down $1.69. Aged bulls averaged $130.11 and aged cows were $131.48.
Lambs face discounts
Beaver Hill Auction in Tofield, Alta., reported 948 lambs and 212 goats traded Dec. 17.
Sheep and goat prices were steady to lower. Buyers were selective and discounted off types dramatically, up to $15 per cwt. lower. To hit the high end of the price range, sheep and goats had to show good finish in all weight categories.
Feeder lambs were under pressure.
Lambs lighter than 70 lb. were $101-$134 per cwt. Lambs 70 to 85 lb. were $110-$127, 86 to 105 lb. were $100-$125 and 106 lb. and heavier were $80-$111.50.
Rams were $54-$101 per cwt. Cull ewes $37-$60 per cwt. Bred ewes were $60-$84.50.
Good kid goats were $150-$191 per cwt.
Nannies were $40-$83.50 per cwt. and mature billies were $130-$169.
Ontario Stockyards reported 3,580 sheep and lambs and 628 goats traded at the Dec. 21 sale.
Most lambs, sheep and goat prices were steady but light lamb prices were a little weaker.
At the Dec. 27 sale, 1,243 sheep and lambs and 90 goats traded. All classes of sheep, lambs and goats were steady.
