Slaughter prices drop
Fed cattle price averages for the week were 50 to 75 cents per hundredweight lower on steers and $1 lower on heifers, Canfax said.
More calves were part of the week’s mix and tended to trade at a discount to the higher yielding yearlings.
Americans were again active buyers and 19,000 head moved south, but the U.S. market was weaker with prices there falling because of weaker beef prices and negative packer margins.
U.S. fed cattle futures prices sharply dipped March 31 after the U.S. Department of Agriculture planting intentions report forecast a big drop in corn acreage this spring, raising corn prices and the cost of feeding livestock.
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The number of cattle sold in Alberta for the week rose 18 percent at slightly more than 22,000 head, Canfax said.
Alberta prices March 30 in light trade were steers $86.60 per cwt. and flat rail $141.50 while a few heifers traded at $84.25.
Canfax said cattle feeders appear to be willing sellers considering that the futures indicate lower prices are coming.
Most will want to sell calves as they are able to grade.
Reduced kills are keeping a lid on the impact of relatively tight market ready supplies, Canfax said.
Expect prices to trend sideways to slightly lower and be mindful of the trend in the exchange rate.
Beef weakens
U.S. cutouts lost $1.50 US on Choice last week and $1.70 on Select, which was surprising after the previous week’s smaller kill, Canfax said.
Beef movement was down eight percent from the week before.
Canadian cutouts were also lower, with AAA down $1.30 Cdn and the AA cutout down $1.20 compared to mid-March.
The Calgary wholesale price for delivery was steady at $145-$148.
Canadian slaughter levels remain low with the kill less than 65,000 head two weeks ago.
Feeder prices rise
Quality continues to be a big factor in feeder cattle prices, Canfax said.
Fleshy cattle and those with mud tag are discounted while quality cattle receive premiums.
Most classes sold steady to higher, Canfax said.
Light steers 300-600 pounds were up 25-75 cents per cwt.; light heifers 300-600 lb. were up $1-$2.75.
Steers 600-700 lb. were up $1.50 and heifers 600-800 lb. rose 50 cents.
Steers 700-900 and heavier fell 25 cents to $1.50 and heifers 800-900 lb. were steady. Heifers 900 lb. and heavier fell $1.25.
Alberta auction markets year-to-date have sold 479,610 head, up 21 percent from last year, but the volume last week was down two percent at 38,333 head, Canfax said.
D1, 2 cows fell 25 cents to average $38.64. Butcher bulls fell 75 cents to average $34.77.
Canfax expects heavy feeders will continue to face pressure from the weak fed market.
One positive is continued U.S. buyer interest; 9,588 head of feeder cattle were exported for the week of March 25.
Feeder volumes will continue to be large in the coming weeks.
In stock cow trade, cow-calf pairs were steady to slightly lower with most trade at $900 to $1,400 and plain types $720 to $850.
Bred cows were steady to higher with most trade at $780 to $1,350 and plain types $500 to $700.
Bred heifers in central and northern Alberta traded higher at $900 to $1,150 and plain types $750 to $850.
Cash hogs slip
Falling pork prices and tight packer margins caused U.S. hog cash prices to fall last week.
Large poultry supplies also weighed on the market.
The composite pork carcass cut-out value fell to $58.17 US March 31, down from $61.21 on March 24.
The Iowa-southern Minnesota live cash price for hogs delivered to plants fell to $40.50 per cwt. March 31, down from $41.50 March 24.
Federal slaughter in the U.S. was estimated at 1.97 million last week, up a little from 1.95 million the week before.
The U.S. Department of Agriculture hogs and pigs report March 31 put the total U.S. hog herd at 60.104 million head, up 0.7 percent over last year, which was less than the low end of pre-report estimates of 100.8 to 102 percent.
The report was expected to support lean hog futures.
Sheep steady
Ontario Stockyards reported that 2,196 sheep and lambs and 367 goats traded last week. All classes of sheep, lambs and goats sold at steady prices.
