Fed cattle edge lower
Prices were $1.50 per hundredweight lower on steers last week while heifers were 80 cents lower, said Canfax.
Averages held at more than $85 per cwt., partly because of high value trade carried from the tail end of the previous week.
Otherwise, averages would have been slightly less than $85.
Volume was up 17 percent to more 27,500 head indicating that feedlots continued to sell their showlists aggressively.
Packer interest was down because of slower beef movement and talk of possible labour issues.
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Alberta prices Jan. 27 were steers $85.25-$86 per cwt., flat rail $141.85 and heifers $85.25-$85.90.
Feedlots are current, but cattle numbers will slowly start to build into February and March.
With so much uncertain about the expected March 7 border opening, Canfax recommends that feedlots keep marketing cattle as they become ready.
Canadian beef cutout traded $1.50 higher on AAA product and $2 higher on AA product two weeks ago, said Canfax.
Hides, renderings and offals brought more value. Wholesale trade at Calgary is steady at $149-$155 per cwt.
Canadian kill was expected for the second week to top 75,000 as packers continued to kill five days a week. American retailers showed resistance to the increase in U.S. cutouts two weeks ago and as a result, Choice product was down $8.25 US, while Select was $9.25 lower last week.
Movement improved with the lower prices.
Feeders flood market
Feeder volumes exploded with just under 43,000 head trading, up 70 percent from the week before and almost five times as large as the year before.
Demand kept up with the increased supply and prices were mostly steady to stronger, said Canfax.
Steers 400-500 lb. saw the largest jump, up $6.50 Cdn per cwt., although on light volumes. Steers 500-700 lb. were $2-$3.50 stronger and 700-900 lb. and heavier traded steady to $1 higher. Heifers 300-800 lb. were 75 cents-$1.75 per cwt. higher, while 800-900 lb. traded steady and 900 lb. and heavier up $2.75.
D1, 2 cows rose nearly $2 per cwt., while butcher bulls were $3 higher at $22. Also D1, 2 rail bids increased to $44-$50 dressed.
Volumes are expected to remain steady to larger because producers are willing sellers and there is good demand, said Canfax.
D1, 2 cows prices are also expected to continue to rise although volumes of cull cows through the ring will be limited as producers come closer to calving.
Stock bred cows in all areas of Alberta brought $300-$890, while most of the bred heifer market was $500-$1,090.
U.S. herd rebuilds
The U.S. Department of Agriculture semiannual cattle inventory report released Jan. 28 confirmed analysts’ expectations that U.S. cattle herd numbers edged higher during 2004 for the first time in nine years.
The one percent increase, compared with a year ago, ends the longest liquidation phase of any cattle cycle.
Other livestock
The Manitoba Agriculture livestock report is not available.
The Iowa-Minnesota negotiated base market barrows and gilts 185 lb. delivered to the plant ranged from $62.50-$75.50 US with a weighted average of $74.47, up $1.19 from the week before.
Late in the week, hog prices came under pressure in the United States as packers attempted to address low profit margins and deteriorating wholesale pork product demand.
American pork exporters had an excellent second half of 2004, said Ron Plain of the University of Missouri. For January-July, U.S. pork exports to Japan were up 6.3 percent from 12 months earlier. For August they were up 18 percent, September up 29.6, October up 34.6 and November up 40.5. Other destination also saw increases.
Sheep lower
Ontario Stockyards Inc. reported 1,399 sheep and lambs and 167 goats traded last week. All classes of sheep, lambs and goats sold $10-$15 lower.
