Fed market stumbles
Canadian fed cattle prices took it on the chin again last week, with the weekly average for steers and heifers falling by $4-$4.50 per hundredweight to hit $78.42 per cwt.
Over two weeks, the weekly average has fallen about $6.50 per cwt.
Canfax said a wave of offerings hit April 13, pressing the market lower and by April 14 prices were around $75 per cwt., well down from the recent peak of $87 two weeks ago.
The Calgary-Nebraska basis widened to -$39.57 last week from -$28.77 the week before.
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Total volumes were up six percent from the week before at 28,500 head, said Canfax.
As more interest in the fed cattle set-aside program develops, the daily average feed cost is falling to $1.19 per day last week. There were 106 bidders participating.
Alberta prices April 14 were steers $124.45-$126.45 per cwt. rail grade with no heifer trade confirmed. Several lots of cattle were passed.
According to Canfax, the question in the market is how the set-aside program will address this falling price.
“Although we don’t know how many cattle have been and are being set aside, the program will need to step up to the plate to show that it can have an impact,” it said.
U.S. cutouts were steady to 75 cents US higher on Choice product, but nearly $3 lower on Select, widening the Choice-Select spread to $16.25 compared to $12.75 the week before.
Canadian kill two weeks ago was almost 78,000 head and was expected to hit 80,000 last week in federally inspected plants. Another 5,000 head are being slaughtered at provincial plants. On average, 18-20 million lb. of beef per week is making its way to the U.S. market. Packers report beef movement as good. The Calgary wholesale market is down $4 Cdn for this week’s delivery with steers at $138-$141 per cwt.
Feeder prices fall
Feeder volumes and prices were lower through Alberta auction markets. About 36,000 head traded, down 23 percent from the week before and two percent less than a year ago.
Steers 500-700 lb. fell $2-$2.50 per cwt., while 700-800 lb. traded $1.25 lower. Steers 800-900 lb. and heavier fell $3-$3.25 from the week before.
Heifers 500-700 lb. traded steady to 75 cents lower, while 700-900 lb. and heavier were down $1-$2.50, Canfax said.
Recent moisture has increased interest in buying cattle to put on pasture, but overall demand will be limited as feedlots suffer from the fed cattle downturn.
D1, 2 cows fell on increased volumes with averages $2.25 lower. Butcher bulls fell $1.25.
D1, 2 slaughter cows are expected to stabilize around $20 per cwt.
Stock bred cows were $400-$850 with tops to $1,100 in southern Alberta. Bred heifers in northern Alberta were $400-$890. Cow-calf pairs were $400-$750 on medium quality and $750-$1,100 on excellent quality.
There were 974,403 head of cattle on feed in Alberta and Saskatchewan April 1, 23 percent more than the same month in 2004 and only two percent fewer than April 1, 2003, Canfax said.
Marketings in March were the largest seen since the border closed. March steer and heifer slaughter in Alberta and Saskatchewan was 235,911 head, 10 percent larger than last year, said Canfax.
Hog price climbs
Canadian and U.S. live hog prices edged higher. The average Iowa-Minnesota daily direct hog price (51-52 percent lean carcass converted to live weight) increased by $2.34 US during the week to $54.90 per cwt. by April 14, said Manitoba Agriculture.
The wholesale pork cut-out price fell by about 48 cents to $67.74 per cwt.
The Manitoba Index 100 hog price average (including premiums and bonuses) was estimated at $156 Cdn per 100 kilograms, up from $151.68 the week before.
For the week ending April 8, Manitoba five kilogram pigs received top bids of $76.75 per pig while contract prices reached highs of $46.66 per pig. Spot prices for 23 kg pigs were to a high of $108.94 a pig and contract tops were $83.73 per pig. The U.S. national direct delivered price for five kg pigs (converted to Canadian dollars) was $37.63-$67.20 per pig and 23 kg pigs were $69.65-$106.92.
Sheep, lambs lower
Ontario Stockyards reported 2,074 sheep and lambs and 184 goats traded.
New-crop lambs sold $5-$10 cwt. lower, while heavy lambs and goats were steady. Sheep prices fell $5-$10 per cwt.
