Fed cattle slightly lower
Extra sales two weeks ago resulted in last week’s show list being 16 percent smaller. Combined with fewer quality discounts, steady prices were maintained, Canfax said.
The Canfax weekly average on steers was $80.88 per hundredweight, up 91 cents, while heifer prices rose 20 cents to finish off the week at $80.75.
Sale volume was 19,000 head, 26 percent lower than the previous week.
Feedlots appear to be fairly current because weights were a little lighter.
Exports to the United States totalled 20,181 head, up 34 percent from the previous week.
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The struggling U.S. market may slow beef movement and Canadian packers may become less aggressive in buying.
Expect prices $1 lower heading into February, Canfax said.
Tyson said last week that it would discontinue slaughter at its plant in Emporia, Kansas, because of financial losses associated with excess slaughter capacity in the industry.
Beef struggles
At a time when U.S. cutouts typically strengthen, they are falling on moderate demand and heavy offerings.
Choice cutouts started the week strong but ended $3.69 US lower, closing at $143.30. The select cutout ended $2.22 lower, closing at $137.05.
Analysts warn that economic problems in the U.S. might weaken demand for the large supplies of meat available.
Weekly kills in the U.S. appear to be too large relative to beef demand, say analysts.
The Calgary wholesale market for delivery this week was steady at $138-$140 Cdn.
Feeders surprise
Feeder cattle had a surprising rebound with prices averaging $1.50 per cwt. higher than the week before, Canfax said. Quality and lower volume helped stave off dropping feeder prices.
Stocker steers 300-600 pounds recovered well with prices $2.25-$2.50 per lb. higher. Steers 600-700 lb. rose $3.25. Larger steers 700-900 lb. and heavier rose $1.25-$2.
Heifers 300-400 lb. dropped $1.50 while 500-800 lb. heifers were up 50 cents-$1.50.
Heifers 900 lb. and heavier were steady.
The weekly volume of 21,373 head was the lowest for this week in four years.
Producers are reluctant to sell at these prices and the number of animals retained is growing, Canfax said.
The year to date, sales volume is at 64,780 head, down 35 percent from the same period last year.
Feeder exports to the U.S. two weeks ago totalled 11,119 head, up nine percent from the previous week and 69 percent higher than this week last year.
Costly feed
Canfax said feeder cattle prices cannot continue at current levels. High feed grain prices will drive feeder pricing lower into February.
Feeder exports to the U.S. are struggling to return to the pace set late last year.
With current corn prices and larger than expected cattle-on-feed placements in the U.S., little change is expected in exports and American buyer interest, Canfax said.
Slaughter cow prices rose 50 cents per cwt. with top end prices pushing toward 40 cents per lb.
Butcher bulls saw strong demand, but prices dipped 25 cents, most likely due to quality.
D1-D2 slaughter cows will see stronger demand with prices increasing toward February.
Butcher bulls should be steady to slightly higher for the rest of this month.
Hog prices rise
Cold weather in the U.S. impeded hog delivery, forcing packers to increase bids to obtain immediate supplies.
U.S. Department of Agriculture data confirmed that the week ending Jan. 12 was the first week ever that pork production exceeded beef production.
Pork production totalled 500.8 million lb. compared to beef at 488 million lb. It was the first week that pork accounted for more than half of all red meat produced in the U.S. in a week.
Iowa-southern Minnesota cash hogs traded at $40 US per cwt. Jan. 25, up from $36.50 on Jan. 18,
The U.S. composite pork carcass cut-out value was $56.59 on Jan. 25, up from $55.54 on Jan. 18.
U.S. slaughter for the week ending Jan. 25 was estimated at 2.31 million, down 4.7 percent from the week before but 11.4 percent more than the same week the year before. So far this year, U.S. hog slaughter is up almost nine percent from last year. Pork production is up almost 10 percent
Bison
The Canadian Bison Association said grade A carcasses from youthful bulls in the desirable weight range in Canada were $1.80 to $2 Cdn per lb.
Heifers were $1.65 to $1.90 per lb.
Cull cows were 60 to 70 cents and bulls 45 to 65 cents per lb. hot hanging carcass.
Lambs, sheep fall
Ontario Stockyards reported 1,528 sheep and lambs and 177 goats traded last week. Light lambs sold $5-$8 per cwt. lower, while heavier lambs dropped $10-$12. Sheep traded $10 cwt. lower and goats dropped $5-$10.
