Fed cattle weaken
Fed cattle prices dipped last week with steer averages at $87.13 per hundredweight, down $1.30. Heifers averaged $87.06, down $1.30, Canfax said.
Volume was close to 23,000 head, enough to clear most of the show lists.
U.S. bids had been on the higher range of the Alberta averages recently, but the spread appeared to narrow last week.
The U.S. to Canada basis was $14.56 under, Canfax said.
Fed cattle exports two weeks ago totalled 19,027 head, up 18 percent from the same week a year ago.
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Canadian slaughter volume last week was 68,003 head, up almost five percent from the same week last year.
Canadian steer carcass weights dropped 12 pounds to 857 lb. from 869 lb.
Prices could be weak again this week, Canfax said, but with slaughter volumes up, carcass weights down and good fed cattle exports, prices could strengthen.
Fed cattle offerings might dip in a few weeks, helping to support prices, Canfax said.
Beef weakens
U.S. beef prices dipped because production is increasing and demand is lackluster. Choice cutout fell $4.97 US to $148.57. Select fell $3.69 to $137.53. The Choice-Select spread is wide at $11.04.
Canadian cutouts also fell with AAA down $3.82 Cdn to $169.61 and AA down $6.25, Canfax said.
Calgary wholesale prices for delivery this week were $145-$147.
Price range widens
Feeder prices recovered last week.
Light calves 300-600 lb. were $1-$2.75 per cwt. higher, while 600-800 lb. were steady to $1 lower.
Heavy feeders were steady to $1 higher.
However, the price spread is getting wider, especially in light cattle where the range is $25-$35 per cwt. depending on type and quality.
Given today’s calf and feed costs and projected finished steer prices, feeders could be losing $100 or more per head, Canfax said.
That will pressure calf prices lower.
Butcher cows traded 25 to 50 cents per cwt. lower and butcher bulls were $1 higher, said Canfax.
Prices should continue in the same trends with butcher cow prices being softer. Look for good local and U.S. buying interest.
For the week ending Jan. 20, 6,598 head of feeders were exported, up 38 percent from the week before.
In light stock cow trade, bred cows were $700-$950, with tops to $1,100 and plain types $300-$650.
Bred heifers were $750-$950, with tops to $1,175 and plain types $400-$700. Cow-calf pairs were $550-$800.
U.S. cattle on feed
Supplies of cattle at U.S. feedlots were at a record high at the start of 2007 despite sky-high feed costs and harsh winter conditions, according to the U.S. Department of Agriculture’s cattle on feed report Jan. 26.
USDA put the January on-feed supply at 11.973 million head, 101 percent of last year.
The December feedlot placement number was 1.714 million, Reuters News Agency said, which was 91 percent of last year and near the high end of trader estimates that ranged from 79.6 to 98 percent.
Marketings at 1.625 million, 95 percent of last year, were near the low end of estimates of 94.4 to 98 percent.
Hog prices up
Market-ready hog supplies tightened last week, helping to press U.S. cash hog prices higher.
Expectations of falling temperatures in the coming week led some to believe packers would have to pay more to get hogs delivered. However, packer margins were slipping, allowing less room for higher bids.
The Iowa-southern Minnesota live cash price for hogs delivered to plants were close to $46 US per cwt. Jan. 26, up from $44.50 Jan. 19.
The U.S. composite pork carcass cut-out value was $64.72 on Jan 26, up from $64.13 on Jan 19.
Federal slaughter in the United States during the week was estimated at 2.08 million, up from 2.07 million the week before.
Bison steady
Top quality bison bull carcasses in Canada younger than 30 months and in the desirable weight range were $1.65 to $1.85 Cdn per lb. with a weighted average of $1.74 per lb., said the Saskatchewan Bison Association.
Rail prices for quality youthful bulls older than 30 months ranged from $114-$145 per cwt. Cull cow prices were 10 to 15 cents per lb. live weight.
The USDA reported Jan. 10 that bull hot carcasses younger than 30-months were $170-$190 US, with an average of $182.23 during December, up $2 from the month before.
Sheep mostly steady
For the week ending Jan. 26, Ontario Stockyards reported 964 sheep and lambs and 111 goats traded.
All sheep, lambs and goats sold at steady prices.
Beaver Hill Auction in Tofield, Alta., reported 744 sheep and 50 goats traded Jan. 8. Feeder lambs were down $10 Cdn per cwt., while finished lambs, culls and goats were steady.
Lambs lighter than 70 lb. were $115-$133 per cwt. Lambs 70 to 85 lb. were $1.20-$138, 86 to 105 lb. were $115-$131.50 and heavier than 105 lb. were $101-$120.
Rams were $60-$94, cull ewes $51-$75 and breeding ewes $91-$100.
Poor and light kid goats lighter than 50 lb. were $100-$145 per cwt. Good kid goats were $151-$200. Nannies were $51-$128 per cwt. and mature billies were $101-$170.
