Fed steers
Fed steers were $2.50 per hundredweight higher and fed heifers were $2.25 higher than the previous week’s averages, said Canfax.
Volume was 23,500, down slightly from the week before. Carcass weights are down, reflecting the recent cold weather and the fact that feedlots are current in marketing, said Canfax.
Alberta prices Jan. 20 were steers $83.75-$84.75 per cwt., flat rail $143.30-$145.90 and heifers $84.75, flat rail $145-$145.30.
Trade on Jan. 19 saw cattle on feed for 200 days or more bring $88-$88.50 per cwt. in the extreme high-end trade.
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Better weather, tight front-end supplies, slightly larger kills and seller optimism are supporting prices, said Canfax.
Canadian cutouts gained strength on the heels of a higher U.S. cutout two weeks ago. Canadian AAA was up 47 cents per cwt., while AA rose $3.22 per cwt. over the previous week.
Wholesale beef in Calgary rose $2-$3 per cwt., in a range of $144-$145. It appears that kills will be slightly larger as packers return to five or six day operations.
U.S. cutouts stabilized after a recent big increase. The Choice was steady while Select was up $2 US.
More feeders moving
With better weather, feeder volumes increased 21Ú2 fold, said Canfax. Stronger prices also attracted volume.
Volume compared to a year ago was up 82 percent.
Offerings of light feeders under 600 lb. were limited, causing dramatic price differences depending on quality. Weekly averages on these classes were $2 lower to $2 higher.
Most of the offering was in the 700 lb. and heavier classes, which were steady to $2 higher. Stronger fed cattle prices have also been a supporting factor.
Slaughter cow prices were mostly steady but a few top end prices were higher than the week before while a small offering of butcher bulls averaged $2 higher, said Canfax.
While prices should continue firm this week, feeder cattle basis levels are still wide at $30 under the U.S. for 850 lb. But considering they were $50-$70 under through much of 2004, it’s a marked improvement.
As the Chicago futures market moves to the March contract, basis levels are expected to narrow to the $20 under range, the narrowest since 2003.
Stock bred cows were $500-$700 in light trade with the low at $320 and the top at $860. Bred heifers were also thinly tested with a range of $600-$800 and the low at $320, high $1,075. No pairs traded, said Canfax.
The USDA cattle-on-feed report issued Jan. 21 surprised the market with more cattle placed into feedlots in December than expected. This pressured futures prices lower Jan. 24. Cheap corn encouraged feeders to place five percent more cattle than December 2003 and 14 percent more than December 2002. Total number of cattle on feed Jan. 1 was 11.31 million, up from 11.25 million the year before.
Other livestock
The Manitoba hog report is not available.
Iowa Minnesota negotiated base market barrows and gilts 185 lb. delivered to plant ranged from $62.50-$75.50 US, with a weighted average of $73.28, up $1.24 from the week before.
The estimated U.S. slaughter to Jan. 22 is 6.03 million, down from 6.80 million a year ago. Analysts say pork packers do not own a lot of supply, giving hog sellers good bargaining strength. Prices in Canada also rose.
Sheep and lambs
Ontario Stockyards Inc. reported 2,956 sheep and lambs and 624 goats traded. All classes of sheep, lambs and goats sold steady due to the Eid al-Adha holiday, a major feast of the Muslim calendar.
