Fed cash prices dip
Cattle futures in Chicago rose last week, supported by the U.S. cattle inventory report that put last year’s calf crop at a 57 year low.
But in Canada, cash prices for fed cattle fell because of weak beef demand, said Canfax.
The average Canfax price on steers was $86.43 per hundredweight, down 43 cents from the week before. The heifer average was $1.52 lower at $85.64.
A fair number of cattle on the show list did not sell and were added to this week’s list.
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Sales volume dropped 26 percent to about 13,000 head. The cash to futures basis weakened to $16.31 under compared to $12.30 under the week before.
Exports to the U.S. fell 12 percent to 12,638 head. That was 41 percent lower than last year.
Canadian feedlot inventories remained fairly current throughout January but U.S. lots fell behind. North American fed supplies are expected to rise through February and exports to the U.S. will likely remain flat, said Canfax.
Prices are unlikely to improve until March when feedlot inventories tighten. Packers will buy minimum volumes for the next two weeks.
D1, 2 cows in Alberta were $34-$50 with an average of $42.75, up 20 cents. Butcher bulls were $40-$64 and averaged $53.98 up $1.66. Exports of slaughter cows and bulls were 4,564 head last week, down from 4,668 the previous week, but up from 2,716 last year.
Volumes should be steady and prices steady to stronger this week.
U.S. beef declines
U.S. cutouts fell sharply last week with Choice down $4.92 to $138.85 US and Select down $4.34 to $135.34, said Canfax.
Choice cutouts are $11.51 lower than the same week last year and Select cuts are $9.10 lower.
Canadian AAA cutouts for the week ending Jan. 23 climbed $4.48 to $176.41. AA cutouts climbed $5.22 to $176.75.
Compared to last year, AAA is 17 percent higher and AA is 20 percent higher.
The Calgary wholesale market for delivery this week was steady at $157-$159. Montreal fell $1 to $166.
Feeder prices rise
Alberta auction market volume rose eight percent to 37,231 head, up from 34,606 the week before and almost three times as many as last year, said Canfax.
Heavy steers were under pressure while yearling heifers sold steady to stronger.
Yearling steers 800-900 pounds and heavier were 75 cents-$1.45 per cwt. lower. Yearling heifers 800-900 lb. and heavier were 24-70 cents higher.
Steer calves 300-500 lb. traded $2.09-$2.85 higher, while heifers 300-500 lb. were 15 cents-$3.30 higher.
Overall, steers averaged 89 cents higher and heifers were $1.30 higher.
Feeder exports to the U.S. totalled 8,400 head two weeks ago, down from 10,401 the week before and down from 13,474 last year.
The yearling steer and heifer market might be weak this week, said Canfax. Grass cattle are still selling into a strong market and prices will likely be steady to slightly higher. With weather improving, auction market volumes are expected to be steady.
More bred cattle are going to market but demand has kept pace, leading to slightly stronger prices.
Bred cows were $550-$875. Bred heifers were $650-$850.
Hog prices fall
Negative margins continued on slaughter, causing U.S packers to bid lower for hogs.
A slaughter plant in Illinois temporarily closed, reducing demand for hogs.
Iowa-southern Minnesota cash hogs fell to $42 US per cwt. Feb. 6 from $45.25 Jan. 30.
The U.S. pork carcass cut-out value edged higher midweek, but fell to $56.83 Feb. 6 from $56.94 Jan. 30.
U.S. federal slaughter to Feb. 7 was estimated at 2.22 million, two percent down from 2.27 million the week before and 1.2 percent more than the year before.
Bison prices stronger
The Canadian Bison Association said prices rose last week. Offerings are increasing seasonally, but could tighten this summer.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.40-$2.80, with an estimated average of $2.50 per lb. hot hanging weight.
Heifers were $2.30-$2.60 per lb. with an average of $2.40.
Cull cow and bull average rose to $1.10 per lb., with sales to $1.45.
Weight, quality and delivery location affect final price.
Sheep and lambs steady
Ontario Stockyards reported 1,601 sheep and lambs and 142 goats traded Feb. 2.
Lambs, sheep and goats were steady.
