Fed cattle supply tight
A tight supply of fed cattle pressed prices higher last week, with the weekly steer average up $2.25 per hundredweight and heifers up $2.50, Canfax said.
Strong prices Dec. 1 attracted the largest volume, with some top prices $2 more than the previous week’s tops.
Dec. 2 saw limited trade and weaker bids because most feedlots had already sold their weekly lists.
More than 24,000 head traded through Canfax members during the week.
Alberta prices Dec. 2 were steers $82 per cwt. live and $141.65 dressed. Heifers were also $82.
Read Also
Vegetable oil stocks are expected to tighten this year
Global vegetable oil stocks are forecast to tighten in the 2025-26 crop year, this should bode well for canola demand.
The high on Dec. 1 was $86.65 per cwt.
Market-ready animal supply is tight, Canfax said. Some feedlots are pulling cattle forward, selling animals now that would normally wait until late December.
Packer-owned inventory is also tight and companies are lifting cattle quickly after purchase.
Prices might weaken later in December when holiday kill schedules disrupt trade and more yearling cattle will be ready for slaughter.
However, any positive news on the U.S. BSE rule heading to Federal Register could offset these negatives.
Beef prices climb
Last week’s Canadian cutouts were steady to 75 cents stronger with the exception of heavy AAA product that was up $2.
Product movement appears to be improving, but loins and ribs are still sluggish, said Canfax.
U.S. Choice and Select cutouts rose sharply by $10.80 US and $9.35 respectively. However, that is still seven percent lower than last year on the Choice product and one percent lower on Select.
Canadian wholesale prices rose this week with Calgary up $2-$7 at $145-$147 per cwt.
Most feeder prices up
Alberta feeder auction markets saw about 40,000 head trade, 30 percent less than the week before and down 10 percent from a year ago, Canfax said.
All weight ranges traded higher, with the exception of 300-400 pound steers that were off 75 cents per cwt.
Steers 400-800 lb. traded $3.75-$4.50 per cwt. higher and 800-900 lb. and heavier steers rose $1.25-$1.50.
Heifers 300-400 lb. were $4.50 higher and 400-500 lb. were up $1.75. Heifers 500-800 lb. were $3.75-4.75 stronger and 800-900 lb. and heavier rose $1.50-$2.50.
D1, 2 cows and butcher bulls were steady.
The feeder market has recently seen lots of buyers because of optimism and year-end tax buying, Canfax said. Volumes are expected to fall at the end of the month, but buyer numbers should remain stable. Historically, feeder markets have dropped off after Dec. 31 as buyer numbers drop.
More bred cows and bred heifers have been trading the last couple of weeks with averages similar throughout Alberta, Canfax said.
Most trade has been at $600-$800 on medium quality with excellent quality cows bringing $800-$1,000 and heifers $800-$1,150. Poorer quality cows and heifers traded as low as $250-$300 .
Cow-calf pairs in central Alberta were $550-$775.
Hogs surge higher
Continuing strong pork demand helped push U.S. hog prices significantly higher last week.
The average Iowa-Minnesota daily direct hog price (51-52 percent lean carcass converted to live weight) increased about 5.6 percent to $64.16 US per cwt. on Dec. 2 from $60.73 Nov. 29, Manitoba Agriculture said.
The U.S. weekly national direct delivered early-weaned pig (10 lb.) weighted average rose $1.49 per pig to $36.89 from the previous week. The weighted average price for 50 lb. feeder pigs fell $2.73 per pig to $69.99 per pig on average.
Iso-wean prices were more than $10 Cdn per pig higher on the spot market in Manitoba two weeks ago. For the week ending Nov. 26, five kilogram pig spot prices were to a high of $65.45 per pig while contract prices reached highs of $49.50. Spot prices for 23 kg pigs posted a high of $92.82 per pig and top contracts were at $73.88. The U.S. national direct delivered price for five kg pigs (converted to Canadian dollars) ranged from $37.56-$51.05 per pig and 23 kg pigs were $62-$90.62 per pig.
Lamb prices climb
Ontario Stockyards Inc. reported that 2,198 sheep and lambs and 657 goats traded. Light grain-fed lambs sold steady while all others were $10-$15 per cwt. higher. Included in the sales were 33 new crop lambs averaging 64 lb., which sold for an average of $199.
Sheep and goats traded steady.
