Fed steer and heifer prices fell about $2 per hundredweight early last week as boxed beef prices fell and packers reduced their kills.
Prices stayed down until a small rally at week’s end based on interest from American buyers.
Offerings were still light but up from holiday volumes, said Canfax. Feedlots have been selling cattle aggressively and more light cattle were in the mix.
Alberta prices Jan. 11 were steers $108.25-$110 per cwt., flat rail $181.25-$182.05 and heifers $105.75-$110, flat rail $182.55.
Canfax said the short-term likelihood of a price rally is remote, but because feedlots are current in their marketings, more price erosion is limited.
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The influence of the United States market depends on the weather. Cold and storms could support prices, but warm weather would weaken the market.
Current strong prices also depend on continuing strong beef demand and competing meats are cheap, relative to beef.
In the beef market, wholesale prices were up $2 in Montreal to $181 per cwt.
The Calgary market reflected lower fed cattle prices and closed steady to $1 lower, with handyweight steers at $177-$189 per cwt. and heavyweights $173-$177.
Prices for hides, hearts and kidney were all lower.
Feeder prices were steady, but the market was watching the weaker fed market and rising volumes.
Some speculation in the industry is that buyers will not aggressively bid for medium or poor cattle in the next month. However, some pens are empty and will need to be filled.
By the end of last week, prices appeared to be wavering and Canfax expected a weaker feeder market this week, especially if body condition and quality aren’t good.
Once quality picks up into February, average prices will likely rebound.
In stock cow trade, bred cows were $850-$1,500, (most sales from $1,000-$1,300), bred heifers from $800-$1,500 (most sales from $1,100-$1,250), and cow-calf pairs from $1,110-$1,450 on a light test.
Canfax said the outlook is steady.
Good pork sales at mid-week in response to slightly lower wholesale pork prices reduced U.S. pork inventories.
However, plentiful hog supplies, a small Saturday kill, lower pork cutout values and poorer profit margins resulted in lower packer bids for hogs, said Manitoba Agriculture.
Iowa-southern Minnesota hog prices (at plant mean, 51-52 percent lean, live equivalent) fell from an average of $38.93 (US) per cwt. on Jan. 8 to $36.89 per cwt. on Jan. 12. Last week’s average hog price was 1.6 percent below the previous week’s level.
Canadian prices were also down.
