Fed cattle steady
Fed cattle prices held the strength they gained at the end of the previous week, with a few more cattle trading in the higher end of the range, Canfax said.
The weekly average rose by $2-$2.50 per hundredweight. The higher prices coaxed more trade, with 16,000 head sold, up 55 percent from the week before.
Carcass weights and days on feed were critical factors in the net price. Longer-fed cattle brought premiums over their shorter-fed counterparts.
Packer interest was generally better, although still spotty at times. Some speculators bought a few cattle to put back on feed.
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Alberta prices Dec. 11 were steers $82-$86 per cwt., flat rail $142.10-$143 and heifers $82.50-$87.15, flat rail $142.
Buying interest should remain relatively good into the New Year, Canfax said.
The last of the older cattle are finally in sight and a tighter supply of new cattle will start off the year.
Look for fed prices in the mid to upper $80s per cwt., depending on quality, with the chance of $90 at year’s end, Canfax said.
Beef price climbs
Wholesale beef prices again climbed with the cash cattle market.
The Montreal price had to play catch up because it held steady last week. Steers are up by $5-$8 per cwt. to $147-$149.
The Calgary market rose $7-$8 to $142-$144.
Byproduct values are also improving because some offal is going to the higher-valued U.S. market.
Beef movement into the U.S. has been active, with last week’s tonnage of 22.6 million lb. double that sold during the same week in 2002.
Feeder volume dips
Alberta auction market volumes dropped, with about 39,000 head trading, down 12 percent from the week before and 34 percent below a year ago.
Prices were under pressure, with the exception of 400-600 lb. calves.
Steers 300-400 lb. were $1 per cwt. lower, 400-500 lb. up $3.25, 500-600 lb. up 25 cents, and 600-900 lb. and heavier were $1.50-$5 weaker.
Feeder heifers 300-400 lb. were $3 lower, 400-600 lb. were 50 cents to $1.25 lower.
Heifers 600-900 lb. and heavier were $2.25-$4.50 lower.
D1, 2 cows rallied $4 per cwt., Canfax said. Cow kill increased as producers became more comfortable with the government support program.
Cow kill should remain steady to higher and prices steady to stronger, depending on the number of speculators interested in owning cull cows.
Feeder outlook
Feeder volumes and prices should be quiet as the year end approaches. Prices in the new year may come under pressure due to increased volume or may find support, depending on the optimism surrounding the expected border reopening.
Bred cows, heifers
Bred cows were $400-$750 for lower quality and $750-$1,200 for quality. Bred heifers on light trade in northern Alberta were $400-$750 for lower quality and $750-$900 for better quality.
In central and southern Alberta, bred heifers were $750-$1,375. Cow-calf pairs traded only in the north at $975-$1,130.
Cattle on feed
The Alberta-Saskatchewan Dec. 1 cattle-on-feed report showed 667,760 head in feedlots, up seven percent from November, but down 25 percent from last year.
Placements in November inched closer to normal. The 226,890 placed were down three percent from last year at the same time.
Even with domestic fed slaughter up three percent from November 2002, marketings ended the month down 18 percent from last year. The decline could be attributed to the live cattle that are normally exported in November.
Hog slaughter up
Higher wholesale prices for most pork cuts in the U.S. were offset by much lower ham values to reduce the pork cut-out value by about $1 US per cwt.
Recent weekly U.S. hog slaughter has been running at four to five percent above the level of a year earlier. The cold weather in many areas discouraged some hog producers from marketing their animals, Manitoba Agriculture said.
Despite narrowing margins, packers increased hog prices slightly during the week.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) increased to $37.52 per cwt. on Dec. 11 from $36.62 on Dec. 8. However, on average, prices were down by almost one percent from the week before. The weaker loonie helped Canadian prices rise.
For January to November 2003, U.S. hog slaughter was close to the level of a year earlier.
With carcass weights averaging about one lb. or 0.5 percent above 2002, U.S. pork production for the 11 months was up by 0.6 percent.
Analysts project that 2003 U.S. production will be the largest ever for the second year in a row. Unless weights fall in 2004, pork production next year could set another record, Manitoba Agriculture said.
Quality lambs steady
Ontario Stockyards Inc. reported 3,949 sheep and lambs and 570 goats traded.
Good new-crop and grain-fed lambs, all weights, sold steady, while all unfinished and plainer types traded under pressure.
Well-fed kid goats sold on a good demand, while others were barely steady.
There was a strong demand for good sheep, but plainer types were easier.
