Fed prices mixed
Fed prices last week were mixed with the average Canfax price on steers $86.63 per hundredweight, down 72 cents from the week before and heifers $87.46, up 91 cents.
The show list was larger, but prices held up thanks primarily to a falling Canadian dollar, Canfax said.
Sales volume was 20 percent larger at just under 25,000 head.
The cash to futures basis strengthened to $16.52 under compared to $18.19 the week before.
Exports to the U.S. rose 21 percent higher to 12,124 head. That was 40 percent lower than last year.
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Market-ready volumes will remain fairly large over the next two weeks but packers have a comfortable supply, and that will put downward pressure on prices.
With a slightly stronger fed basis, exports to the U.S. will likely ease temporarily. Prices will likely soften $1-$2, if the loonie does not weaken further, Canfax said.
D1, 2 cows in Alberta rose to $33.30-$50.25 per cwt. The average was $42.12, up $2.12, said Canfax.
Butcher bulls were $39-$60.25 with an average of $50.73.
Exports of slaughter cows and bulls for the week ending Jan. 17 were 3,830 head. Cow kill is strong in 2009, up nine percent from last year, which will support prices and volume.
The weak stock market and growing U.S. unemployment pressured Chicago fed and feeder cattle lower.
Canadian beef price rises
In Canada, AAA cutouts climbed $1.54 over the week before to $171.93. That was $22.42 or 15 percent higher than last year, Canfax said.
AA cutouts were $171.53, up $2.55 over the previous week and $25.16, or 17 percent, higher than last year.
The Calgary wholesale market for delivery this week was $2 to $3 higher at $154-$159. Montreal rose $2 to $167.
U.S. Choice fell $1.10 to $149.65 last week while Select slipped eight cents to $143.54.
Choice cutouts were $6.35 higher than last year and Select cutouts were $6.49 higher.
Feeder prices rise
It was a good week to trade feeders with lots of cattle on offer thanks to better weather and stronger prices on all classes, Canfax said.
Alberta auction volume was 64 percent larger at 32,506 head. That was up 29 percent from a year ago. Many feedlots want to fill empty pen space.
Yearling steers 800-900 pounds and heavier were $3.30-$3.90 per cwt. higher. Heifers 800-900 lb. and heavier were $1.75-$2.70 higher. Steers 300-500 lb. rose $4.25-$4.95, while heifers 300-500 lb. rose 65 cents-$2.80.
Overall, steers averaged $3.87 higher and heifers were $2.65 higher.
Feeder exports to the U.S. totalled 5,382 head two weeks ago, up from 2,868 the previous week but down from 11,119 head last year.
Auction volume should pick up, Canfax said. With many feedlots current, there is strong buying interest.
Few bred cattle were on offer with prices steady to lower than last week. Bred cows were $350-$750. Bred heifers were $700-$750. Bred cattle sales will likely be scattered over the next few weeks.
Hog prices weak
Packers were losing money on slaughter discouraging them from bidding higher for hogs.
The USDA reported U.S. pork stocks in cold storage at the end of December were up 20 percent over last year.
The outlook is for tighter hog supplies ahead.
Iowa-southern Minnesota cash hogs edged slightly lower to $44 to $44.50 US per cwt. on Jan, 23 from $45 Jan. 16. The U.S. pork carcass cutout value rose to $57.81 Jan. 23 from $56.60 Jan. 16.
U.S. federal slaughter to Jan. 24 was estimated at 2.24 million, down from 2.32 million Jan. 17 and down 3.5 percent from last year. So far this year, hog slaughter is down 13 percent from last year.
Bison prices steady
The Canadian Bison Association said prices were mostly steady.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.30-$2.80, with an estimated average of $2.40 per lb. hot hanging weight.
Heifers were $2.20-$2.60 per lb. with an average of $2.20.
Cull cow and bull average rose to $1.05 per lb., with sales to $1.30.
Federal slaughter in 2008 totalled 20,990, up eight percent. But provincial slaughter to the end of November was down 23 percent to 4,094.
U.S. federal slaughter was 51,622, up 10 percent.
Sheep and lambs steady
Ontario Stockyards reported 1,831 sheep and lambs and 122 goats traded Jan. 19.
Lambs and sheep were steady. Goats were steady to higher.
