Too cold to deliver
The bitter cold that hit large parts of Canada and the U.S. in early January backed up delivery of livestock to slaughter plants.
The implication is that when the weather moderates, these older, heavier animals will hit the market, increasing supply and lowering prices.
Canfax says the week beginning Jan.13 saw an average run of more than 14,000 slaughter cattle to packers. There was good demand from local plants, but U.S. buyers backed off because of the run up in the Canadian dollar.
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The Calgary wholesale beef price rose two cents to $1.26-$1.36 per pound.
The feeder market last week was strong as feedlots looked for supplies after several weeks of light trade. Volume was up 70 percent over the previous week.
The strongest gains were posted on light cattle under 600 lb. and heavier feeders over 900 lb.
Prices rose $2-$3 a hundredweight and the outlook was for the market to hold steady or rise a little.
In the hog market, a return to better weather this week caused prices to drop on Monday.
The cold had reduced supplies and allowed prices to creep up last week. But a backlog of heavy, storm-stayed hogs was expected to hit the market this week forcing prices down.
Saskatchewan lamb prices held steady with the previous week at $1.15-$1.20 a lb. Sheep price was 36 cents a lb. and goats 45 cents. In Alberta, Canada West Foods was paying $1.10-$1.20 a lb. for 75-85 lb. lambs.
