Fed cattle prices drop
Fed cattle prices slipped 50 cents-$1 per hundredweight last week.
A rollout of the nearby April live cattle futures contract into potentially greener fourth quarter live contracts, combined with the strong Canadian dollar, pressured fed prices lower, said Canfax.
The Canfax average on steers was $84.68 per cwt., down 59 cents, while heifers were $83.64, 94 cents lower than the week before.
Sale volume was about 16,000 head, 25 percent smaller than the previous week.
The cash to futures basis was $4 under compared to $5.92 under last week.
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The U.S. Department of Agriculture reported that 18,048 head of fed cattle were exported to the U.S., down eight percent from the week before.
Anticipated tighter fed supplies should see packer interest improve in mid-month, said Canfax.
April live cattle futures should see some recovery this week to strengthen prices.
Choice cutout drops
U.S. cut-out values rose but then fell last week with prices at the close 81 cents US lower for Choice, at $148.96. Select closed steady at $146.79.
Canadian sales were slightly slower as retailers geared up for Easter.
The Calgary and Montreal wholesale markets for delivery this week were steady at $142-$143 Cdn and $150-$151 respectively.
Feeders mostly steady
There was another healthy volume of feeder cattle last week at prices mostly steady, but demand was selective, said Canfax.
There was a tight supply of steers and heifers in the 300-400 pound class. Quality issues pressured prices $2-$2.25 lower compared to the previous week.
Grass-type steers 400-600 lb. saw good demand with prices $1 per cwt. higher.
Steers 600-700 lb. were mostly steady, while the 700-900 lb. and heavier class traded $1 lower.
Heifers 400-500 lb. saw good demand with prices $1 higher while 500-600 lb. were steady.
Heifers 600-700 lb. fell 50 cents and 700 lb. and heavier were stronger.
Replacement heifers 900 lb. and heavier were about $2 higher.
Sales volume dropped 17 percent from the week before to 48,104 head. That was down 12 percent from last year.
Exports to the United States rose to levels not seen since the fourth quarter of 2007, said Canfax.
Exports climbed to 19,807 head, up 13 percent from the week before and a whopping 61 percent more than the same week last year.
Canfax expects steady large market volumes this week, putting pressure on prices.
Expect prices $1.50-$2 lower by the third week of March with 700 lb. and heavier feeders leading the pack, Canfax said.
D1, 2 slaughter cows gained $3.25 per cwt. and butcher bulls rose $2.50 on stronger exports.
D1, 2 slaughter cows and butcher bull prices are expected to remain strong.
Hog prices lower
An ample supply of market-ready hogs in the U.S. continued to press prices downward.
Nearby Chicago hog futures fell, but expectations that China might increase pork imports added some support.
Snowstorms that knocked out power in January are said to have killed about four million pigs in southern China, meaning the supply of market-ready pigs in June and July might be depressed by about seven percent.
Iowa-southern Minnesota cash hogs traded at $40-$40.50 US per cwt. March 7, down from $43 Feb. 28.
The U.S. composite pork carcass cut-out value was $59.46 March 6, down from $60.05 Feb. 29.
U.S. slaughter for the week ending March 6 was estimated at 2.23 million, up 1.8 percent from the week before but just five percent higher than last year. That was the first time this year that the increase over last year was not in the double digits.
Bison prices steady
The Canadian Bison Association said markets were steady and supply is tight.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $1.85-$2.10 per lb.
Heifers rose to $1.85-$2.05 per lb.
Cull cows were 60-75 cents and bulls dipped to 60-85 cents per lb. hot hanging carcass.
Lambs steady
Ontario Stockyards reported 1,306 sheep and lambs and 112 goats traded last week. Lambs, sheep and goats were steady.
