Canadian prices gain on U.S.
Alberta fed cattle averages rose $2 while the U.S. market stumbled ahead of American Thanksgiving and dropped $2 US, said Canfax.
The basis narrowed by $5 Cdn to $12-under. The pre-BSE five year historic basis for November is $7.65-under, but the range is $5.05- to $11.89-under. These historic figures do not account for the higher freight rates today plus the extra export requirements and costs.
Most feeders sold willingly last week but the volume was only about 22,000 head, indicating the tight supply of market-ready cattle.
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About 20,000 fed cattle were exported.
Alberta prices Nov. 17 were steers $94 per hundredweight, flat rail $155.50-$155.75 and heifers $93.75-$94.35, flat rail $153-$155.
Canfax said packers will want to limit the price gains by cutting slaughter. But feedlots feel like they’re in the driver’s seat and have the momentum to keep the market rolling.
Canadian cutouts have climbed through early November along with the U.S. trend. Smaller kills have supported the cutout.
Food service business is good, but retail sales are slow and will change little as Christmas ham and turkey start to dominate meat counters.
The U.S. cutout gained $7.50 US on Choice while Select gained $9.30.
The Calgary wholesales for delivery this week rose $4 Cdn to $155-$157 on steers.
Auction flow slows
Alberta auction markets saw 71,000 head trade, down 30 percent from a week ago, but up 18 percent from the year before, said Canfax.
There was a wide range in quality and price.
First cut calves were steady, while second and third cuts were under pressure.
Light steer calves 300-500 pounds fell 50 cents-$3.75 from the week before, while 300-400 lb. heifers were $1 lower.
Steers 500-600 lb. rose $1.60 and 600-700 lb. gained 50 cents. Heifers 400-700 lb. rose 75 cents-$2.
Yearlings were under pressure. Reflecting quality, steers 700-900 lb. and heavier were steady to $3 lower, while heifers of the same weight group fell 25 cents-$2.50.
D1, 2 cows were $2 lower on larger volumes.
The calf run is almost complete and volumes are expected to be steady to lower, supporting prices, but price averages will reflect quality.
D1, 2 cows are anticipated to be under pressure for the next few weeks.
Most quality bred cattle were $750-$1,050 with tops to $1,250 on bred cows and $1,470 on bred heifers. Cow-calf pairs were $400-$870 in central and northern Alberta.
The U.S. Department of Agriculture on Nov. 18 reported the feedlot cattle supply as of Nov. 1 was 101 percent of a year ago, or 11.475 million head. Analysts on average expected 100.6 percent.
The report also showed larger than expected October placements, which could pressure February and April cattle futures.
Hogs fall
American cash hog prices fell last week.
Packer demand weakened as they finished off meeting demand for American Thanksgiving. A large Cargill plant in Ottumwa, Iowa, was closed from midweek on after an accident killed a worker.
Slaughter margins remained profitable and about 2.1 million head were processed, similar to the week before.
The Iowa-southern Minnesota live cash price for hogs delivered to plants on Nov. 18 was $44 US compared to $46 on Nov. 11.
The USDA composite pork carcass cut-out value was $65.50 per cwt. on Nov. 18, down from the $66.05 posted Nov. 11.
Record hog weights for Iowa southern-Minnesota barrow and gilts caused excess tonnage of retail cuts again last week.
Sheep and lambs
Ontario Stockyards Inc. reported 1,675 sheep and lambs and 269 goats traded. Light lambs sold $5-$8 cwt. higher. Heavy lambs, sheep and goats were steady.
At Beaver Hill Auction in Tofield, Alta., 737 head sold Nov. 17. All lamb classes sold $8-$20 per cwt. higher.
Prices are expected to remain strong leading up to Christmas and the Muslim holiday of
Eid-e-Qurban where animals are sacrificed and the meat distributed to the poor.
Lambs under 70 lb. were $131-$140 per cwt., 70-85 lb. $130-$139.50, 86-105 lb. $119-$127, and fat lambs 105 lb. and heavier $109-$120.
Cull ewes were $40-$63. Rams $45-$88.
Kid goats 50-80 lb. $115-$123. Nannies $45-$61. Mature billies $105-$121.
