Fed prices rise
Fed cattle price averages rose $1.75-$2 per hundredweight from the previous week, but the faltering stock market forced live cattle futures and the Canadian dollar to trend lower.
The average Canfax price on steers was $89.79 per cwt., up $2.17, and heifers averaged $89.54, up $1.69.
Bids did not meet sellers’ expectations and a large part of the show list passed.
Sales volume of about 13,500 head dropped 13 percent from the week before.
The cash to futures basis weakened to $18.47 under compared to $15.98 under the week before.
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Fed cattle exports to the United States rose 21 percent to 14,099 head, but that was 22 percent lower than last year.
Feedlot inventories are caught between tightening fed yearling volume and the arrival of larger numbers of fed calves.
Fed cattle marketing can now be pushed back or pulled forward.
With the weak cash-to-futures basis and lack of April live contracts, cash will be king, Canfax said.
D1, 2 cows in Alberta traded at $42-$58.50 per cwt., with the weekly average rising 36 cents to $50.09, Canfax said.
Butcher bulls were an average of $50-$70.50, rising 28 cents to $61.64.
Slaughter cow and bull exports totaled 4,808 head two weeks ago, up from 4,413 the previous week but down slightly from 4,819 last year.
Trim product is in demand, supporting cow prices and encouraging producers to cull their cows.
Beef recovers
Calgary wholesale prices for delivery this week rose $3 to $162-$164. Montreal was steady at $168, Canfax said.
Byproduct prices continued flat with a range of $60-$94.
After a six-week slide, U.S. beef cut-out prices rebounded with Choice up $2.82 US to $135.47 and Select up $2.87, closing at $134.12, Canfax said.
Canadian AAA cutouts the week of Feb. 20 were $3.18 Cdn lower than the week before but were $12.73, or eight percent, higher than last year. AA cutouts were 66 cents lower than the previous week but $13.58 or nine percent higher than last year.
Feeder market hot
The feeder market was strong again and grass cattle were hot, rising by $1-$5.
With supplies expected to tighten, competition for feeders could get fierce, Canfax said.
With large to moderate offerings and strong interest, prices will likely continue at these levels.
Steers 600-800 pounds were $2.40-$3.95 per cwt. higher and heifers in the same weight range were 60 cents-$1.50 higher. Steer calves 300-500 lb. were 40-95 cents higher, while heifers in the same range were steady to 95 cents higher.
Overall, steers averaged $1.83 higher and heifers were 80 cents higher, Canfax said.
Alberta auction market volume dropped 14 percent last week to 41,880 head.
The year to date auction volume is 301,508 head, up 23 percent from last year.
Feeder cattle exports to the U.S. totalled 8,604 head two weeks ago, up from 8,327 head the previous week but down from 19,807 head last year.
Bred cows were steady at $700-$1,010 and cow-calf pairs were $1,000-$1,075.
Hog prices jump higher
U.S. cash hog prices rose sharply last week as market-ready supply dwindled. Fewer Canadian feeder imports and a reduction in breeding 10 months ago are being felt.
Iowa-southern Minnesota cash hogs rose all week, climbing to $46.50 March 6 from $40-$41 US per cwt. Feb. 27.
However, pork prices did not keep pace and packers’ operating margins dropped through much of the week.
The U.S. pork carcass cut-out value climbed to $56.92 March 3, but drifted back to $55.26 by March 6, compared to $56.35 Feb. 27.
U.S. federal slaughter to March 7 was estimated at 2.23 million, up from 2.18 million the week before and about steady with the year before.
Bison prices dip
The Canadian Bison Association said A1 slaughter supply is up. That, and the weak economy, pressured prices slightly lower.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.40-$2.70 Cdn, with an estimated average of $2.40 per lb. hot hanging weight. Heifers were $2.30-$2.60 per lb. with an average of $2.30.
Cull cow and bull average rose to $1.15 per lb., with sales to $1.45.
Weight, quality, age and delivery location affect final price.
Lambs steady
Ontario Stockyards reported 1,384 sheep and lambs and 32 goats traded March 2. Sheep, lambs and goats sold steady.
