Fed cattle prices fall
Fed cattle prices slipped mid-week causing the week’s averages to fall $1.50-$2 per hundredweight, said Canfax.
Cattle movement was moderate, similar to the week before.
Prices ranged widely on quality, with short fed cattle at the lower end of the trading range and long fed cattle at the top.
Alberta prices Jan. 14 were steers $92.75-$94.35 per cwt., flat rail $158.10-$158.20 and heifers $92.70-$96.10.
Price action in the near term could be a bit choppy, said Canfax.
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Movement into the United States will continue because it is financially worth it. A wide Canada-U.S. basis remains on cash cattle.
Feedlot marketings are still current and that should help their bargaining position. But packers want to reduce slaughter to support beef prices.
February prices should start to see some improvement based on tighter cattle supplies.
Beef prices mixed
The U.S. cutout last week was mixed with Choice down 75 cents US and Select up 35 cents from the week before. Movement was strongest since mid-December, said Canfax.
Canadian cutouts are sluggish so far in January. December’s monthly average was three percent higher than November, continuing the seasonal improvement usually witnessed at the end of the year. It was also 10 percent stronger than December 2004, but four percent lower than the five year average cutout for December, said Canfax.
Calgary wholesale prices for delivery this week fell by $2-$3.50 Cdn to $161.50-$162. Canfax said beef buyers appear to be willing to sit on the sidelines for now.
Feeder volume pressures price
Volumes through Alberta auction markets increased substantially from the week before. Slightly fewer than 25,000 head moved, four times more than the week before and almost 21/2 times more than the same week a year ago.
Price averages were mixed as heavier steers and heifers came under pressure with the increased volume.
Steers 300-700 pounds traded $1.25-$4.75 per cwt. higher, while 700-900 lb. steers were steady to $1 lower. Steers 900 lb. and heavier traded $2.50 stronger.
Heifers 300-600 lb. were steady to $1.50 higher, but 600-900 lb. and heavier fell $1.50-$3.
D1, 2 cows slipped 75 cents on reduced demand, averaging around $34. Late week sales were lower at $28-$32. Butcher bulls were $1 higher at $30.50.
Canfax expects volumes to continue rising into February, putting pressure on heavier cattle that are destined to finish during the summer market doldrums. Also, U.S. buying interest is weak because Canadian feeder prices adjusted for export costs are similar to U.S. prices. However, if heavier cattle prices drop too much, it will entice more U.S. buyers and provide a floor to the market, said Canfax.
Slaughter cows are also expected to be sluggish during January with less packer interest and smaller cow kills.
Stock bred cows in southern and central Alberta in light trade were $650-$900 with tops to $1,000.
Cattle on feed
The number of cattle on feed in Alberta and Saskatchewan on Jan. 1 was 1.07 million head, up five percent from the same month last year, 16 percent larger than 2004 and three percent larger than in 2003, which is the nearest comparable year with open border conditions.
December 2005 placements were down eight percent from December 2004 because of increased exports in 2005. If western Canadian feeder exports of about 36,000 head were added to the December 2005 number, the two months would have similar placements.
Alberta and Saskatchewan marketed 207,272 in December, up six percent over 2004. The December disappearance figure fell 12 percent from the same month in 2004.
Hog prices weaken
An adequate number of hogs marketed, heavier than normal weights and falling pork prices caused cash hog prices to fall in the United States last week.
The average pork plant margin for Jan. 13 was estimated at $2.85 US per head, down from $11.70 the week before, according to HedgersEdge.com.
The heavier carcasses have prompted lower bids from packers because pork cuts from those hogs do not easily fit standard packaging, dealers said. Hog weights jumped three lb. in Iowa and Minnesota markets last week to 274 lb. That compares with 271 lb. the previous week and 269 lb. a year ago.
About 2.07 million head were federally slaughtered in the U.S. in the week ending Jan. 14, up from 1.82 million the week before, and up from the 2.03 million processed in the same week last year.
The Iowa-southern Minnesota live cash price for hogs delivered to plants slipped to $40 on Jan. 13, down from $42.50 on Jan. 6.
The U.S. Department of Agriculture composite pork carcass cut-out value was $61.28 per cwt. on Jan. 13, down from $63.59 per cwt. Jan. 6.
Light lambs weaken
Ontario Stockyards Inc. reported 2,914 sheep and lambs and 346 goats. New-crop lambs sold at easier prices, while heavy lambs, sheep and goats traded fully steady.
