Fed cattle edge higher
Fed steers averaged $88.43 per hundredweight, up 44 cents from the week before, while fed heifer prices were up 20 cents to average $88.36, said Canfax.
Packer interest was good from local and United States buyers.
Slightly more than 22,000 head traded.
Sellers were able to clean up most of their show lists and were expected to carry almost no inventory into the new week.
The cash to cash basis improved to $13.05 under. Even adding $2 for additional export costs, the basis is still well above the historical average.
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The five year 1998-2002 average basis for January is $5.26 under.
Fed cattle exports two weeks ago totalled 15,136 head.
While prices have edged up, bearish undertones still exist, Canfax said.
There are lots of cattle available and carcass weights are 10 pounds heavier than the same week last year.
Keeping current will be key in maintaining the market.
Beef price drops
U.S. beef values softened late in the week.
U.S. packers increased kill volumes last week after reducing production earlier in the month due to poor margins and winter storms, said Canfax.
With increased production, packers lowered beef prices to customers. Choice was $153.54 US per cwt., down 51 cents and Select was $141.22, up $1.91.
Beef movement was described as low.
Beef buyers are buying only immediate needs in anticipation of large production and lower prices ahead, Canfax said.
Canadian cut-out values for the week ending Jan. 5 were AAA $165.79 Cdn and AA at $155.26.
Canadian beef movement is described as slow. Calgary wholesale prices for delivery this week were quoted at $145-$149.
Feeder prices weaken
Slow auction market volumes have characterized the new year with lower prices, lower futures and high grain prices being factors in the delayed marketing, said Canfax.
Feeder cattle were under pressure in all classes with light calves 300-600 pounds, down $3-$3.50 and 600-800 lb. down $1.25-$4.25. Heavy feeders were down $1-$2.25.
For the week ending Jan. 12, 4,767 feeder cattle were exported.
Packers were interested in cows last week with prices $1-$2 higher and butcher bulls steady.
Volumes are expected to be steady to larger into February keeping downward pressure on prices.
Light cattle might be under pressure until the grass market picks up in late February to early March.
Slaughter cows are expected to trade steady with continued packer interest keeping the market moving, said Canfax.
Limited offerings in stock cow trade saw prices strengthen. Bred cows were mostly $650-$900 and plain types $350-$600.
Bred heifers were mostly $700-$910 and plain types $450-$650. Cow-calf pairs were $500-$800.
Hog prices up
Rising pork prices helped U.S. plants raise hog bids to attract deliveries that had slowed because of winter storms.
Strong hog marketings in most recent weeks have helped reduce carcass weight in Iowa and Nebraska to 269.8 lb., down from 271 lb. the week before.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $44.50 US per cwt. Jan. 19, up from $42 Jan. 12.
The U.S. composite pork carcass cut-out value was $64.13 on Jan 19, up from $62.48 on Jan. 12.
