Fed cattle rise
The Canfax weekly average for steers rose $3 per hundredweight to $85, while heifer prices were up $2 to $83.50.
Volume was about 18,000 head, up nine percent from the previous week.
As the week progressed, packers had to increase bids to secure inventory.
The cash to futures basis was $7.99 under, compared to $9.65 under the previous week.
Fed cattle export volume was six percent higher than the week before at 19,883 head.
Exports to the U.S. for the year total 124,506, steady with the same time period last year.
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However, exports from the West are down 11 percent, while exports from the East are up 57 percent.
The supply of older yearlings has been cleaned up and younger, higher quality animals will become more numerous, which should support prices, said Canfax.
Beef prices improve
The Calgary wholesale market for delivery this week was $3 per cwt. higher at $142-$143.
The George Morris Centre boxed beef commentary reported beef margins at retail are above average and steady, which should encourage further beef features.
It also reported the beef cutout was 17 cents per kilogram higher than chicken two weeks ago, compared to the typical premium of 38 cents, making beef a good buy at retail.
U.S. Choice cutout ended the week $1.52 US lower at $148.91. Select was $1.30 lower at $146.81.
U.S. beef movement improved for the first time in two weeks.
Feeders rise
Feeder volumes rose and prices climbed $2 per cwt., said Canfax.
Steers 300-400 pounds rose $1.25 while heifers rose $3.25. Steers 400-700 lb. rose $2.50-$3.25.
Steers 700-900 lb. and heavier increased 75 cents-$1.50, while heifers 400-900 lb. and heavier rose $1.75-$3.
Auction volume of 43,604 head was 11 percent higher than the previous week, but down eight percent from last year.
With limited demand from Canadian feedlots, American buyers and other speculators are doing most of the buying, said Canfax.
USDA reported 15,915 head imported into the U.S. two weeks ago, down seven percent from the previous week.
Year to date, Canadian feeder exports are up 42 percent from last year.
Exports will continue to tighten feeder supplies and prices are expected to climb this week, albeit at a slower pace, said Canfax.
This cannot be maintained at current barley and corn prices so feeder prices are expected to soften in March.
D1, 2 slaughter cows rose $1.75 per cwt. last week. Butcher bulls rose $4.25.
Prices are expected to strengthen through March due to tight supplies, level off until summer and then decline with the fall run, Canfax said.
Cow and bull exports sit at 22,196 head for the year to date with a weekly average of 3,400 head.
Pork surplus
Pork stocks in U.S. cold storage warehouses rose sharply in January to a record for the month and the fourth largest supply ever.
“Pork production has overwhelmed our demand,” Glenn Grimes, agricultural economist at the University of Missouri, told Reuters.
“Slaughter in January was up 14 percent and we put quite a bit of it in cold storage.”
The news pressured hog futures prices.
Weaker pork prices and improving weather were expected to pressure U.S. hog cash prices this week.
Cold and snow kept prices steady last week.
Iowa-southern Minnesota cash hogs traded at $44 US per cwt. Feb. 22, steady with prices Feb. 15.
The U.S. composite pork carcass cut-out value was $60.68 Feb. 22, down from $63.47 Feb. 15.
U.S. slaughter for the week ending Feb. 15 was estimated at 2.23 million, steady with the week before but 11 percent higher than the year before.
Bison prices mixed
The Canadian Bison Association said grade A carcasses from youthful bulls in the desirable weight range in Canada climbed to $1.95-$2.05 per lb.
Heifers rose five cents to $1.80-$2 per lb.
Cull cows fell to 60-80 cents and bulls dipped to 60-85 cents per lb. hot hanging carcass.
Lambs steady
Ontario Stockyards reported 1,441 sheep and lambs and 57 goats traded last week.
Lamb prices rose and sheep and goats were steady.
