Animal slaughter up
Western packers had another big slaughter week, killing more than 67,000 head, said Canfax.
Steers averaged $2.75 per hundredweight higher and heifers were $4.25 stronger.
Trade started slow but picked up during the week.
Steer prices were in the mid $80s, while some heifers made it to the high $80s on good yields.
Prices backed off slightly Jan. 22 as packers balked at the higher price. Producers then backed off selling.
Canfax members reported a volume of slightly more than 24,000 head, down 17 percent from the week before.
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Alberta prices Jan. 22 were steers $83-$84.15 per cwt., flat rail $143 and heifers $83.50-$85.50, flat rail $143-$144.
Strong export demand continued to help fuel the strong slaughter levels.
If packers continue to kill at these levels, producers should remember that they have better bargaining power than they have in a long time, Canfax said.
Feeder numbers up
Feeder auction market volume in Alberta climbed 92 percent from the week before to about 14,000 head, said Canfax. But that was down 69 percent from last year.
Although prices of lighter steers and heifers rose, trade was small and the market was not truly tested.
Steers 700-900 lb. traded down $2.50-$3 per cwt. Heifers 700-900 lb. and heavier were $1.25-$1.50 lower.
All feeder prices were about $34.50-$45.25 per cwt. lower than a year ago, said Canfax.
D1, 2 cows traded $3.75 per cwt. higher than the week before.
The low feeder volumes show that producers are again undecided as to whether to retain ownership. Volumes are still expected to increase, because most producers who still have calves either do not have the facilities or the feed to finish them.
Increased volume usually causes price pressure.
Also, feedlots are still struggling over where to price feeder cattle considering the uncertainty surrounding the opening of the U.S. border.
In stock trade in central Alberta, medium quality bred cows traded at $500-$800, while in the north, quality bred cows were $750-$900 on light trade.
Bred heifers in central Alberta were $500-$700 on low quality and $700-$900 on higher quality.
In northern Alberta, bred heifers were lightly tested and ranged between $800-$1,000.
No cow-calf pairs traded.
Steady on beef exports
Packers reported steady to heavy export beef sales to Mexico and steady sales to the United States.
Wholesale beef prices in Montreal rose $3-$4 to $145-$148 per cwt. and Calgary prices rose $4-$6 to $142-$144 on steers.
U.S. cutouts gained momentum last week, with Select and Choice up $6.75 and $7 US respectively. This accounted for a five percent increase in prices, which also supported the stronger U.S. cash cattle prices.
Hog prices rise
The U.S. pork cut-out value rose by $2 per cwt. last week due to higher prices for all primal cuts except hams and bellies.
Hog slaughter declined from the week before and hog prices rose, said Manitoba Agriculture
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) increased from $40.26 US per cwt. on Jan. 19 to $43.22 on Jan. 22.
The weekly average hog price rose by about seven percent from the week before.
The Canadian dollar fell, which, together with higher U.S. hog prices, increased average Manitoba hog prices.
The weekly hog outlook by Glenn Grimes and Ron Plain of the University of Missouri said the following:
“These stronger prices occurred even with slaughter continuing well above last year. Slaughter under federal inspection was estimated at 2.037 million head for the week, up 7.3 percent from a year earlier.
“For the past four weeks, slaughter has been up 5.5 percent, well above expectations based on the December hogs and pigs report.”
They noted loin prices fell late in the week.
“The odds appear high that we have run prices about as high as are likely until we reduce slaughter some more.”
Lambs sell higher
At Ontario Stockyards Inc., 2,197 sheep and lambs and 973 goats traded. All classes of lambs sold $5-$10 cwt. higher.
Sheep held steady. Good kid goats sold barely steady due to the volume, while all other goats were steady.
New-crop lambs were $134-$220 per cwt., high $242. Lambs 65-80 lb. were $104-$153 per cwt., high $206. Lambs, 80-95 lb., $88-$126, high $150. Lambs, heavier than 95 lb., $70-$115 per cwt., high $144.
Feeder lambs, $100-$135 per cwt. Sheep, $47-$57 per cwt., high $64. Plainer types, all weights, $34-$47 per cwt. Rams, $55-$70 per cwt.
