Fed cattle rise
Fed cattle price averages in Western Canada did much better than the United States market last week, rising $1.45 per hundredweight on steers and 65 cents on heifers, said Canfax.
Given that the U.S. dollar fell and the loonie rose, the strength of the Canadian market was notable and highlighted how market-ready supplies here are much tighter than they are in the U.S.
The Canada-U.S. basis narrowed to nearly par while the basis to the June futures is a positive $4.25 per cwt.
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Cattle at the higher end of the price range easily surpassed U.S. price equivalents.
Cash sales to the U.S. stopped, Canfax said.
Alberta prices May 4 were steers $85.20-$86.80, flat rail $142-$144 and heifers $85-$86.50, flat rail $143.25-$144.
Strong or premium basis levels typically don’t last long.
But Canadian feedlots remain in good shape, having kept their marketing up to date and with carcass weights falling as cattle were pulled forward.
Packers are sending a clear message that they want the cattle to stay here, for now.
However, Canfax said the Alberta market can’t buck the lower U.S. trend forever and recommended feedlots continue to push cattle through.
Beef prices stable
Canadian cutouts changed little, despite the strength of the loonie. Many cut-out prices are at a premium to their U.S. equivalent. Eastern Canada is attracting beef imports from the U.S., said Canfax.
Wholesale prices in Calgary were steady with prices for delivery this week at $142.50-$145.
U.S. cutouts May 4 were 50 cents-$1 US lower than the week before.
The Choice-Select spread was the widest it has been at $18.50.
Feeder cattle weaken
Feeder cattle prices edged lower, partly due to a strong Canadian dollar and reduced U.S. buying interest, said Canfax, but prices appeared to firm by late in the week.
Feeder steers 700-900 pounds and heavier fell 75 cents-$1.50 Cdn and heifers 700-900 lb. and heavier dropped $1-$1.75.
Steers 500-700 lb. fell 25 cents-$1.50 and heifers 500-700 lb. were down 75 cents-$1.50.
Light steers 300-400 lb. were down 25 cents while steers 400-500 lb. were up 25 cents.
Light heifers 300-500 lb. were down 50 cents-$2.75.
Alberta auction market volumes were down 21 percent at 32,508 head compared to the week before. Year to date feeder volumes were up 10 percent at 646,566 head.
D1, 2 cows fell $1 to average $38.54.
Butcher bulls were down 25 cents to average $34.92.
Canfax said quality would continue to be an issue with cattle heading to auctions. Trade would be affected by the strong Canadian dollar.
Volumes will dwindle now as the grass greens, said Canfax.
Feeder cattle exported to the U.S. for the week ending April 29 were 6,574 head.
Stock cow-calf pairs in central and northern Alberta traded higher with most at $1,000-$1,500 and plain types $600-$900, said Canfax.
A special cow-calf dispersal sale in southern Alberta saw pairs sell at $1,225-$1,625 to average $1,475.
Bred cows in central and northern Alberta traded steady with most trade at $1,000-$1,600 and plain types $500-$900.
Bred heifers in northern Alberta traded lower with most trade at $850-$1,050 and plain types $600-$800.
Hogs prices steady
U.S. cash hog prices were about steady last week as packers reduced slaughter to boost pork prices.
Many U.S. packers closed May 1 for immigration rallies, but did not pick up the pace later in the week to make up for the loss. By doing so they shifted their margins back into the black after posting losses early in the week.
The composite pork carcass cut-out value rose to $69.05 US May 5, up from $66.58 April 28.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $46-$47 May 5, about the same as the $46.50 posted April 28.
Federal slaughter in the U.S. was estimated at 1.809 million, down from 1.974 million the week before.
Ron Plain and Glenn Grimes of the University of Missouri noted in their weekly hog market review that U.S. demand for meat in the first quarter of 2006 was down at the consumer level. Pork demand was down 3.5 percent, beef two percent and broiler 0.5 percent.
Sheep edge higher
Ontario Stockyards reported 1,425 sheep and lambs and 125 goats traded last week. All classes of sheep, lambs and goats sold actively at slightly higher prices.
Slaughter bison steady
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 Cdn per lb.
