Outlook dims
Analysts are starting to forecast summer cattle prices lower than those indicated by the futures market. They note that beef demand in Canada and the United States is weaker than last year. Feedlots in Canada are current in their marketing but in the United States, a large number of cattle are slated to hit the market this summer and that will likely put downward pressure on prices.
Fed cattle drop
The fed cattle price average dropped $2 per hundredweight on steers and $1.50 on heifers compared to the week before, said Canfax.
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Some higher priced cattle were still in the average from the end of the previous week, otherwise the averages would have been slightly lower. About 22,000 head traded.
Producers sold aggressively with some light, soft calves in the mix.
The few yearlings available brought the higher end of the price range.
Fed cattle exports dipped to 14,000 head, the smallest since early January.
The narrow basis is affecting exports as is the percentage of calves in the mix.
Alberta prices April 27 in limited trade were steers $84-$84.50 per cwt., flat rail $138-$139.45 and heifers $138.50.
The narrow basis of about $5.50 under on a cash basis kept cattle moving to town even though they barely graded. It was the narrowest basis since 2003 and compares to a same week pre-BSE average of $8.77 under.
Tight local supplies compared to the U.S. are clearly playing a part. The sharply rising Canadian dollar wasn’t enough to offset the price spread between the two countries.
Current front-end and tight local supplies will go a long ways in keeping a narrower basis, said Canfax, noting that Canadian packers might try to reduce kill to widen the basis.
Beef prices rise
Calgary wholesale prices for delivery this week is lower in a range of $143-$146. The rising loonie limited the gain on Canadian cutouts.
U.S. cutouts gained much needed ground with Choice up $6 US per cwt. and Select up $3.40.
The Choice-Select spread has widened to $18 per cwt. as is common at this time of year. Cutouts usually make an annual high in May.
Some of the cut-out strength was attributed to the closure May 1 of many U.S. plants as employees rallied against stricter immigration legislation.
Feeder prices rise
The feeder market was little changed with a large range between fleshy and poor quality cattle at the low end and quality grass cattle at the high end. Feeder prices were mostly higher, with light steers 300-400 pounds up 25 cents per cwt. and light heifers up $2.25 Cdn.
Steers 400-600 lb. fell $1.75-$2.25 and heifers 400-600 lb. Cdn were down 75 cents-$1.25.
Steers 600-700 lb. rose 75 cents and heifers 600-700 lb. were up 75 cents-$1.25.
Feeder steers 800-900 lb. and heavier were up $1.25-$1.75 and heifers 800-900 lb. and heavier rose 75 cents-$3. D1, 2 cows bounced back $1 to average $39.47 and butcher bulls rose 75 cents to average $35.13.
Alberta auction market volumes rose 27 percent to 40,910 head. Year-to-date feeder volume at 614,058 head is 12 percent higher than last year.
Feeder volumes will start to decline with the end of the spring run. With a mix of quality animals heading to auction, price ranges will still be wide.
Another factor pressuring prices down is the discounted summer futures market and the lower fed cattle prices in Canada and the U.S.
Feeder cattle exports to the U.S. for the week ending April 22 totalled 5,255 head.
In stock cow trade, cow-calf pairs traded higher at $1,050-$1,750, with plain types $750-$1,000. Bred cows were lower with most trade at $850-$1,580, plain types $500-$800.
Bred heifers were steady at $875-$1,000, plain types $700-$850.
Hog prices climb
Cash hog prices rose again last week on strong packer demand and tight available supplies.
Packer operating margins slipped into a negative range as pork prices failed to keep pace with rising hog prices.
The composite pork carcass cut-out value rose to $66.58 US April 28, up from $63.27 April 21.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $46.50 April 28, up from $44.50 on April 21. Federal slaughter in the U.S. was estimated at 1.974 million last week, up 2.5 percent from the 1.925 million slaughtered the week before.
Many U.S. hog plants were closed May 1 for immigration rallies.
Light lambs slip
Ontario Stockyards reported 1,834 sheep and lambs and 108 goats traded last week. Light lambs sold under pressure. Heavy lambs traded barely steady. Sheep and goats sold steady.
Slaughter bison prices
Saskatchewan Bison Association reported that Canadian rail carcass prices for top quality bison bulls younger than 30 months were unchanged at $1.70 to $1.90 per lb.
USDA reported the April 10 carcass price for hot hanging young bison bulls at a weighted average of $1.75 US per lb.
