Fed cattle rally
In strong fed cattle trade, average prices for steers last week rose 65 cents per hundredweight to $87.99 and heifers rose 83 cents to $88.16.
U.S. and local buyers were active, said Canfax, but trade was active, the show lists were large and there may have been carryover.
The Canada to U.S. cash basis narrowed to $13.38 under.
Fed cattle exports two weeks ago totalled 8,572 head.
Canfax expects the rally to be short-lived. The combination of growing show lists, declining U.S. fed cattle prices and a higher Canadian dollar could pressure prices lower, said Canfax.
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Beef steady
Canadian trade was steady, but to have decent speed through the pipeline, large retail movement is needed, said Canfax.
The George Morris Centre quoted AAA cutouts at $161 and AA cutouts at $155. AAA and AA are both up $3 from the previous week.
The Calgary wholesale market for delivery this week was $2 higher, at $146-$149 per cwt.
U.S. beef trade rallied last week.
Choice was up $6.95 US at $154.05 and Select was up $7.23 at $139.31. Reports of plants cutting kills in the United States along with good demand likely contributed to the rally.
Blizzard cuts volume
Feeder cattle prices recovered somewhat but auction market volumes were affected by last week’s blizzard conditions across the Prairies, said Canfax.
Auction market volumes for the week were 15 percent smaller than last year at 21,262 head.
There was good local and U.S. interest, which helped support the higher feeder prices.
Lightweight steers 300-600 lb. rose $1.50-$5 Cdn per cwt. and heifers 300-600 pounds rose $1.75-$5.25.
Steers 600-800 lb. were up $3-$3.25 and heavy steers were down $1-$2.50.
Heifers 600-800 lb. were 50 cents lower to $1 higher and heavy heifers were steady to $1.25 higher.
Feeder cattle exports for the week ending Jan. 6 were 3,351 head, 54 percent more than the week before but 26 percent smaller than last year, said Canfax.
Butcher cows were 50-75 cents higher and butcher bulls were down 50 cents.
Canfax said auction market volumes usually pick up in January and heavy feeder prices start to drop.
Chicago feeder cattle futures fell on the report of tight U.S. corn stocks.
In light stock cow trade, bred cows were mostly $600-$900 and plain types $350-$550. Bred heifers were $350-$650 and cow-calf pairs $500-$800.
Cattle on feed
The Jan. 1 Alberta-Saskatchewan cattle on feed total was almost identical to the start of 2006, said Canfax.
A total of 1.07 million head were on feed
Jan. 1, just 3,179 head more than last year at the same time, but 16 percent larger than 2004.
Feeder placements in December were 44 percent, or 57,446 head, larger than last year.
The 2006 fourth quarter total placements were down nine percent from 2005 and down seven percent from 2004.
The reduction in placements through the fourth quarter is likely a result of falling feeder prices keeping cattle at home and higher feed costs leading to calves going into backgrounding feedlots rather than directly to feed.
Feeder exports in the fourth quarter were also smaller in 2006, down more than 50 percent, or 67,471 head, from 2005.
The December marketing number from the cattle on feed survey group totalled 157,277 head, two percent larger than December 2005.
Fed marketings from Alberta and Saskatchewan totalled 180,062 head, which included an 18 percent decrease, or 29,925 head fewer in domestic slaughter as well as a 14 percent increase of 6,149 head in fed cattle exports.
Hog prices up slightly
Hogs in the United States have been plentiful due to reduced slaughter during the holidays. Also mild weather for much of the fall and winter has allowed hogs to quickly reach market weight.
However, some Iowa dealers said hog numbers could tighten in February, the result of hog deaths from circovirus in 2006.
Ron Plain of the University of Missouri noted in his weekly report that U.S. pork exports in November were up 22 percent from a year earlier. For January-November, pork exports were up 12.1 percent from a year earlier.
Net pork exports as a percentage of production increased from 7.95 percent in January-November 2005 to 9.43 percent of production for the same months of 2006.
“This is one of the major reasons why demand for live hogs was so much stronger in 2006 than the domestic consumer demand for pork,” Plain wrote.
The Iowa-southern Minnesota live cash price for hogs delivered to plants fell to $42 US per cwt. Jan. 12, up from $41.50 on Jan 5.
The U.S. composite pork carcass cut-out value was $62.48 on Jan. 12, down slightly from $62.59 on Jan. 5.
Federal slaughter in the U.S. during the week was estimated at 2.1 million, well up from the previous holiday-shortened week at 1.84 million.
