Fed rally stalls
Fed cattle prices fell last week with averages about $2-$2.50 per hundredweight lower than the week before.
The week’s show list was smaller, but feedlots were reluctant sellers at the lower prices. Only 16,000 head traded, down 23 percent from the week before, said Canfax.
Packers were comfortable with their supply, given reduced kill and cows making up a larger percentage of the kill. U.S. buying helped stop prices from falling further.
Alberta prices Nov. 30 were steers $84.25 per cwt. live and $142.35 dressed, while heifers were $84.40-$85.30, $141 flat.
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Weak cut-out values will not help fed cash markets in December, Canfax said. Supplies will build through the month and although feedlots will likely remain active sellers due to higher feed costs, it might not give them
leverage.
Winter storms in the United States can lend a spark to winter cash prices, but rallies will be short. Indications are for larger supplies in both countries over the next 90 days.
Beef weaker
Many had hoped for better beef prices after U.S. Thanksgiving, but that has not occurred.
Cutouts in the U.S. lost $2-$2.65 compared to the week before. Cutouts are now seven to nine percent lower than they were a year ago.
Packers are responding by cutting kills in an effort to drive beef prices higher or pressure cash cattle prices lower, said Canfax.
Smaller kills heading into bigger winter supplies are bad for prices.
Canadian cow beef inventory is growing because large cow kills mean ample product in the system.
The Calgary wholesale market for delivery this week was $1 lower in a range of $141-$143.
Feeders weaken
Cold and snow cancelled some feeder sales last week and limited attendance at others, said Canfax.
Feeder prices were softer due to lower auction market volumes, a lower fed cattle market in Canada and the U.S. and fewer buyers.
Steer and heifer calves 300-500 lb. were $1.25-$4.25 per cwt. lower, 500-700 lb. steers and heifers were steady to $1.75 lower.
Steers 700-900 lb. were steady to 75 cents lower. Steers 900 lb. and heavier were $2 higher.
Heifers 700-900 lb. and heavier were steady to $1.25 higher, said Canfax.
Auction market volume was about 53,000 head, 20 percent down from the week before and 25 percent lower than last year. About 3,540 feeder cattle were exported in the week ending Nov. 24, a light showing due to the U.S. Thanksgiving. Butcher cows were 25 cents lower and butcher bulls were 75 cents lower.
Historically, volumes start to decrease near the end of December and that may happen earlier this year due to the high grain prices putting pressure on the feeder market, Canfax said.
A larger offering of bred cows and heifers met weaker prices. Bred cows were mostly $700-$1,000 with tops $1,265 and plain types $300-$600.
Bred heifers were mostly $800-$1,100 with tops $1,350 and plain types $300-$750.
Hogs weaken
A blizzard blew through the U.S. Midwest late last week, hampering hog deliveries. Traders thought this would push more hogs to market this week, pressuring prices.
Ham demand for Christmas has so far not shaped up as expected.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $46 US per cwt. on Dec. 1, down from $47 Nov. 24.
The U.S. composite pork carcass cut-out value fell to $65.07 US on Dec. 1, down from $67.27 on Nov. 24. Federal slaughter in the U.S. was estimated at 2.16 million, up from 1.97 million the week before.
Bison slow
