Fed cattle edge higher
The Canfax average on steers was $84.48 per hundredweight, up last week 65 cents and heifers were $84.40, up $1.01 from the week before.
Volume was about 20,000 head, 70 percent larger than the previous week because of a large carryover.
Most of the listed cattle sold.
The cash to futures basis was $5.64 under compared to $4.31 under last week.
Exports to the United States for the week ending April 5 totalled 15,012 head, down seven percent from the previous week and 11 percent lower than the same week in 2007.
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Fed exports so far this year are down nine percent from last year.
The red meat glut in North America is expected to continue for at least the first half of this year, Canfax said.
Canadian feedlots are reducing the number of cattle on hand. Tighter supply and improved demand as the weather warms should support Canadian fed prices.
Beef prices rise
U.S. cut-out values rose with Choice up $4.27 US, closing April 10 at $141.94. Select rose $4.16 to $141.16.
The Choice-Select spread widened to 78 cents as Choice volumes were up 19 percent.
The cool weather across much of Canada has delayed the usual spring pickup in demand, Canfax said.
Concerns about the weak U.S. economy pulling the Canadian economy down, record high fuel and heating bills and rising food prices are all affecting consumers’ meat buying decisions. Consumers are shifting to cheaper cuts of meat, which has a strong impact on premium item prices. Also, there is a large supply of AAA and Choice product weighing on premium cuts.
Large supplies of relatively cheap pork and poultry have pressured the wholesale market at a time when it would normally be trending up.
The Calgary wholesale market for delivery this week was down $1 at $142-$144 Cdn while the Montreal wholesale market was steady at $150-$151.
Feeders slightly higher
Feeder cattle prices rose 60 cents per cwt. from the week before, Canfax said.
Prices of heavier steers trended stronger compared to light animals. Heifers were slightly lower.
The feeder price ranges are on page 8.
Western Canada auction market volume so far this year is down 10 percent at 849,000 head compared to 935,000 last year.
Two weeks ago 15,959 feeder cattle moved south, up 55 percent from the same week a year ago. So far this year feeder exports are up 66 percent, Canfax said.
Outlook: Volumes remain steady to seasonal trends and should decline as we move into the mid-year.
D1, 2 slaughter cows were $44.92 up $1.38 from the week before and 41 cents higher than the same time last year.
Butcher bulls were steady at $49.71, up 22 cents from a week ago.
Feedlot numbers down
The number of cattle on feed in Alberta and Saskatchewan April 1 was down 12 percent from the year before.
The number of cattle placed in feedlots in March was down 10 percent from last year.
The number of cattle marketed by the Canfax survey group was 145,443 head, down 20 percent from March last year.
U.S. hog prices stronger
Rising pork prices, a strong export pace and active slaughter compared to last year all helped push U.S. hog prices higher last week.
The U.S. Department of Agriculture last week raised its 2008 U.S. pork export forecast to 3.735 billion lb. from its March estimate of 3.685 billion. It also raised its 2008 U.S. pork production estimate to 23.554 billion lb. from 23.154 billion in March.
Iowa-southern Minnesota cash hogs showed good strength last week with prices reaching $44.50 US per cwt. April 11, up from $41 on April 4. Last year at this time prices were $48.50.
U.S. pork exports in February were up 57 percent from the year before.
The U.S. composite pork carcass cut-out value rose to $62.62 US April 11, up from $59.19 April 4.
U.S. slaughter for the week ending April 12 was estimated at 2.25 million, down from 2.28 million the week before but 14.2 percent higher than last year.
Bison bulls rise
The Canadian Bison Association said the market was steady to stronger last week.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2-$2.25 per lb.
Heifers were to $1.90-$2.12 per lb.
Cull cows were 70-85 cents and bulls saw sales to 90 cents per lb. hot hanging carcass.
Lamb prices steady
Ontario Stockyards reported 1,721 sheep and lambs and 155 goats sold April 7.
Lambs were steady. Sheep were barely steady. Well finished kid goats were higher.
