Fed cattle rally
Fed cattle sales started off slow but picked up midweek, resulting in a price average for steers and heifers that was steady with the week before, said Canfax.
About 19,500 head traded, down nine percent from the week before.
The cattle on offer mix is starting to see more light carcasses. This should be reflected in the kill in the next few weeks.
Alberta prices Nov. 16 were steers $83.20-$84.50 per hundredweight and heifers $84.10-$85.
Canadian prices were a bit stronger and the Canadian dollar weakened a little, but the basis remained at $14 under due to the U.S. market strengthening. Normally the basis improves this time of year. But that is not certain given the current large cow kill, said Canfax.
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Small offerings are expected for the next few weeks. A few new cattle will start showing up in the mix soon but shouldn’t burden the market.
Canfax expected prices would firm this week.
In the United States, fed cattle prices also strengthened but beef prices fell, cutting into beef processing margins.
Beef falls
The U.S. cutout lost 60 cents on the Choice from the week before while Select was $2.20 lower, said Canfax.
Buyers will be on the sidelines until after American Thanksgiving.
Canadian cutouts two weeks ago lost $1 on the AAA and nearly $5 on the AA with weakness evident in all primal cuts.
Packers report lots of product in the pipeline.
Canadian packers processed 70,000 head two weeks ago, the most since June. This was a result of the largest cow kill since February at 16,300 head.
The Calgary wholesale price for delivery this week is steady at $140-$142 per cwt.
Feeder prices steady
Feeder market prices stopped falling last week and even looked stronger at the end of the week, said Canfax.
Those late numbers will figure in next week’s report.
A combination of the smaller run, a firmer fed market and some year-end tax spending led to the stronger tone in the feeder and calf complex.
Most weight categories were steady with the exception of 400-600 pound steer calves averaging $2.50-$3 higher.
Canfax said quality was a factor with top end calves fetching most of the price improvement while plain types were still tough to sell.
Auction market volumes were down 18 percent at about 66,000 head. That was down seven percent from the same week in 2005.
Feeder cattle exports are well under year ago levels with movement two weeks ago totalling 3,126 head, compared to more than 11,000 last year.
Cull cows and bulls were $2 lower.
Canfax said trends in the remaining few weeks of 2006 would be largely dictated by whether the fed market can sustain a price rally and by the number of cattle bought as tax expenses.
Focus after the New Year will likely return to high grain prices and rising costs of gain.
With smaller runs this fall, there might be larger feeder numbers to move sometime before spring.
Canfax expected prices in the short run to be more stable and perhaps gain, but sees a bearish market longer term.
In stock cow trade, volumes are picking up but prices aren’t.
Top quality cows and heifers brought steady prices but plain to average types were under pressure.
Bred cows were mostly $600-$800 with tops to $1,270 and plain types $310-$550.
Bred heifers were $700-$1,000 on quality with tops to $1,275 while the plain end saw $500-$650.
Hog prices fall
Hog prices in the United States fell again as packers prepared for the slow period around the American Thanksgiving holiday.
The decline in hog prices has outpaced falling pork prices, so American packers margins have improved.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $42.50 US per cwt. on Nov. 17, down from $46.50 Nov. 10.
The U.S. composite pork carcass cut-out value fell to $64.21 US on Nov. 16 but recovered to $65.31 on Nov. 17, up slightly from $65.26 on Nov. 10.
Federal slaughter in the U.S. was estimated at 2.12 million, little changed from the week before.
Sheep steady
Ontario Stockyards reported 1,688 sheep and lambs and 251 goats traded. All classes of sheep, lambs and goats sold at steady to higher prices.
Beaver Hill Auction in Tofield, Alta., reported 1,054 sheep and 215 goats traded Nov. 13. Prices were mostly steady but heavy lambs and off types were under pressure.
Lambs lighter than 70 pounds were $122-$158 per cwt.
Lambs 70 to 85 lb. were $127-$142.50, 86 to 105 lb. were $100-$125 and heavier than 105 lb. were $80-$114.25.
Rams were $53-$73, cull ewes $53-$65 and breeding ewes $65-$84.
Poor and light kid goats less than 50 lb. were $80-$130 per cwt. Good kid goats were $130-$171. Nannies were $48-$101 and mature billies were $105-$115.
