Fed prices drop
Fed steer average prices were $1.25 lower per hundredweight last week, while fed heifers were $1.50 lower.
Packers were content to buy only what they needed and producers were willing to sell what they offered.
Volume was about 20,000 head, up 14 percent from the previous week.
A few cattle passed at lower bids.
Alberta prices May 12 in light trade were steers $79.25 per cwt. live and $134 dressed. There was no heifer trade.
Trade this week will be affected by the coming Victoria Day holiday.
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Kill two weeks ago was the largest since September 1976. Combined federal and provincial slaughter has topped 88,000 head per week, said Canfax.
Fed prices are expected to stay near $80 per cwt., which is high enough to attract supply.
Holiday supports beef
Canadian beef cutouts rose $3-$4.50 per cwt. two weeks ago. That put the AAA at slightly more than $184 and the AA at almost $177. Prices reflected the strength in the U.S. market and good demand heading into the holiday weekend.
Pricing last week was expected to show the weakness that developed in the U.S. cutout, which was $6-$6.70 US lower, with the Choice slipping back to about $153.
Recent bigger kills in Canada are increasing the supply available to ship to the United States.
Calgary wholesale prices this week were $2 Cdn per cwt. lower in a range of $136-$139. Retail business was considered good.
Further plant delistings have occurred for shipping into Mexico, which will keep tonnages lower than expected heading in that direction.
Feeder prices firm
Feeder cattle prices were steady to stronger last week, said Canfax.
Alberta auction market volumes were 12 percent lower with about 33,000 head trading. That was 55 percent higher than last year.
Steers 500-600 lb. were steady, while 600-800 lb. rose $1.50-$1.75 per cwt. over the week before. Steers 800-900 lb. and heavier traded steady to $1 stronger.
Heifers 500-600 lb. were the hot ticket item, trading $4.75 higher. Heifers 600-700 lb. were $1.25 higher, while 700-800 lb. were under slight pressure. Heifers 800-900 lb. and heavier were steady.
D1, 2 cows stabilized at $23.50, while butcher bulls gained $1.
Feeder cattle volumes will start to seasonally tail off into June and July. Historically, there has been a seven to 13 percent decline in feeder volumes from May to June. Smaller volumes should help to support prices. D1, 2 cows are expected to continue trading around $20 per cwt., said Canfax.
Stock bred cows and heifers in northern Alberta were $300-$700.
Cow-calf pairs in northern and central Alberta were $450-$925 with sales up to $1,250 in central Alberta, while in the south, trade was at $850-$1,400.
Hog prices fall
Several U.S. hog plants cut slaughter last week because of tight supplies and poor operating margins. This sharply weakened cash hog prices.
But by week’s end, margins had improved and plants were expected to increase production this week, buoying cash prices, traders said.
Top cash prices in Iowa and southern Minnesota were about $57 at plant May 6, dropping steadily to $54 by May 13.
USDA estimated the week’s slaughter at 1.819 million head, compared with 1.85 million the week before and 1.843 million a year ago.
USDA reported the composite pork carcass cut-out value on May 12 was $78.63 US per cwt., up $2.22 from the week before.
Analysts think American consumer demand for pork is weakening this year. Also, speculation that the border could open to Canadian cattle in June, dropping U.S. beef prices, put a little downward pressure on hog futures.
Lamb prices rise
Ontario Stockyards reported 1,366 sheep and lambs and 81 goats traded. All classes of lambs and sheep sold $5-$7 Cdn. cwt. higher. On a good demand, goats fetched higher prices.
