Fed cattle prices rise
U.S. fed cattle markets surged another $1 US per hundredweight last
week, an increase of $7 in seven weeks.
But prairie prices were steady due to disruptions at the IBP plant in
Brooks, Alta.
The disruption occurred when the U.S. Department of Agriculture
delisted the plant for export to the U.S., reducing the kill at
Brooks all week. It is anticipated that the plant will be back on full
schedule early this week, Canfax said.
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More cattle moved into the U.S. as the basis widened to $10-$12 Cdn
under the cash market.
Offerings were limited as many producers took a wait-and-see attitude.
Volumes were down three percent.
Alberta prices Nov. 21 were steers $100.05-$102.10 per cwt., flat rail
$168.50 and heifers $100.50-$103.15, flat rail $168.25-$168.35.
The Montreal wholesale beef price rose by $3-$4 to $170-$171 per cwt.
Calgary prices are up slightly.
U.S. cut-out values soared $8 US per cwt. and are now $9 per cwt.
higher than last year.
Part of the reason was the kill disruptions at the Swift plant in
Greeley, Colorado, which closed as the USDA’s Food Safety and
Inspection Service cracked down on carcass fecal contamination.
Although production resumed Nov. 21, the reduced kill was enough to
reduce overall U.S. tonnage.
Cut-outs also rose because the small weekly kill two weeks ago spooked
buyers who rushed in to pick up product.
In Canada, plants able to export to the United States also saw large
increases in cut-out prices, with the AAA light almost $14 Cdn per cwt.
higher than the week before and $12 per cwt. higher than last year.
Canfax said the much stronger U.S. market should push western Canadian
prices higher, assuming kill and export business return to normal.
It said cattle feeders need to take the opportunity to sell cattle soon
because holiday disruptions through December could limit how much
higher the cash market can go.
Feeder cattle prices up
Almost all classes of feeder cattle were $1.25-$3 stronger last week.
Calves rose partially because of the recent USDA cattle-on-feed report.
It generated optimism for the fed cattle market in the new year, which
helped to increase interest from local and U.S. buyers.
The on feed report also helped yearling markets, as did smaller volumes
of heavier feeders.
The number of cattle at Alberta auction markets was 75,500 head, two
percent more than the previous week and 43 percent larger than last
year.
Slaughter cow prices averaged $4.25 per cwt. higher, with some sales
even stronger.
Canfax said feeder volumes will likely start to slow over the next few
weeks. Interest should remain strong from local buyers who would like
to secure more inventory before the new year.
The lower Canadian dollar will likely help to maintain the interest of
U.S. buyers.
In stock cow trade, quality, dispersal-type cows began to show
premiums at some sales.
Exceptional quality bred cows and heifers sold as high as $1,500.
The more common types traded as low as $600, with the bulk of the bred
cow trade at $750-$1,200 and the bred heifers from $800-$1,250.
Demand lifts hog prices
Higher prices for hams helped to raise the wholesale value in the U.S.
last week as retailers secured supplies for Thanksgiving.
Compared to the same time last week the cut-out value was up 98 cents
US per cwt.
The demand for pork was encouraging to hog markets, considering the
competition from turkey at this time of year. Retail prices for turkey
have been low this U.S. Thanksgiving due to special price discounts.
Hog markets were still cautious because the week after Thanksgiving
traditionally sees the highest slaughter volume, even though many
analysts believe the large supply bulge in August and September will
not be repeated.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent,
lean carcass converted to live weight) rose from $28.84 per cwt. on
Nov. 18 to $29.67 Nov. 21, an increase of two to three percent.
The Nov. 20 USDA cold storage report showed record end-of-October ham
and total pork stocks.
However, many analysts noted hog numbers should drop off soon and that
additional stored pork will be needed to fill shortages.
