Fed prices rally
Fed cattle prices rose substantially with some cattle trading at slightly more than $100 per hundredweight on March 15.
The week’s average price for steers was $98.96 per cwt., up $5.50 from the week before while heifers averaged $98.17, up $4.75, said Canfax.
Interest was excellent from Canadian and U.S. buyers and producers were active sellers. Slightly more than 20,000 head traded.
The cash-to-cash basis narrowed by $2.69 to $16.76 under. Fed cattle exports maintained their torrid pace with 18,927 head moving south two weeks ago, said Canfax.
Read Also
Pulse fractionation business expected to soon get a boost
Louis Dreyfus Company will soon be producing pea protein isolate at its new plant under construction in Yorkton
Year to date, 82,938 head have been exported, up 21 percent from last year. This trend is not expected to change until the Canada-U.S. basis narrows.
With the United States beef herd in the rebuilding stage with more heifers held back for breeding, the packing industry is operating at well below capacity. Failure to run close to capacity generates losses, so analysts expect U.S. demand for Canadian fed cattle will be strong as packers try to improve plant utilization rates.
In Canada, Alberta fed cattle slaughter so far is up four percent over last year.
But with the supply of market-ready cattle tight, plants have recently reduced slaughter. How packers continue to react to tight supplies will affect prices.
Beef prices rise
U.S. cutouts ended the week higher with Choice up $7.96 US at $166 and Select up $7.87 at $156.37. Cutouts lost ground near the end of the week but that wasn’t reflected in the week’s averages. The Choice-Select spread was $9.63, said Canfax.
Beef movement was below average and didn’t keep up with the pace of slaughter.
Canadian cutouts recovered in the beginning of March with AAA up $1.16 Cdn to $174.46 and AA up $1.19 to 169.66.
The AAA-AA spread was steady at $4.80. The Calgary wholesale market for delivery this week is $165-$173.
Feeders stronger
Feeder cattle trade was solid with good buyer demand, said Canfax.
Light steer and heifer calves 300-600 pounds rose $1-$4 and 600-800 lb. steers and heifers climbed $1-$3.75.
Steers and heifers 800-900 lb. and heavier rose $2-$3.
Alberta auction market volumes were up five percent from the week before and 19 percent from last year at just under 57,250 head.
Auction market volume is up four percent so far this year at 416,745 head. For the week ending March 10, 11,454 feeders were exported, 35 percent more than the previous week.
Butcher cow prices rose $1.50-$2.25 and butcher bulls were up $2.50.
Canfax said heavy feeders will likely follow fed cattle markets.
Auction numbers are expected to remain fairly large over the next few weeks. Exports should also stay strong.
Bred cattle traded lower on limited offerings. Bred cows were mostly $650-$950 with plain types $450-$600. Bred heifers were $650-$950 and plain types $450-$600. Cow-calf pairs were $850-$1,100 with tops to $1,300 and plain types $600-$800.
Cattle-on-feed report
Alberta and Saskatchewan feedlots held 1,027,041 head on March 1, down one percent from last year and four percent smaller than in 2005 at the same time, said Canfax.
Placements were 210,000, up 25 percent over February 2006. But February placements of more than 210,000 head were posted in 2005, 2002 and 2001.
The weight category with the largest increase in placements was 700-799 lb., an increase of 48 percent compared to last year.
Feeder cattle exports in February were steady with 2006.
Marketings by the Canfax survey group of larger feedlots were up 28 percent. Total marketings, including total slaughter and exports of fed cattle in Alberta and Saskatchewan, were two percent larger than in 2006.
Hog market reverses
Another week of heavy hog slaughter in the U.S. led to large pork supplies, falling pork prices and reduced bids for hogs.
Good weather allowed strong hog deliveries and good margins encouraged a strong slaughter rate. But the rising supply of pork will likely keep the hog market on the defence this week. The Iowa-southern Minnesota price March 16 was $46 US per cwt., down from $47.50 March 9.
The U.S. composite pork carcass cut-out value was $65.49 March 16, down from $68.85 March 9.
Federal slaughter in the U.S. during the week was estimated at 2.133 million, up slightly from 2.128 million the week before.
Bison steady
Top quality, younger-than-30-month bison bull carcasses in Canada in the desirable weight range were $1.60-$1.90 Cdn per lb. The weighted average was $180.29 per cwt. rail grade.
Rail prices for quality youthful older-than-30-month bulls were $120-$145 per cwt. Cull cows were 10 to 15 cents per lb. live.
The United States Department of Agriculture reported March 13 that younger-than-30-month bull hot carcasses were $160-$185 US, with an average of $181.75 during February.
Cull cows were little changed, averaging $113.52 per cwt.
Lambs steady to stronger
Beaver Hill Auction in Tofield, Alta., reported 286 sheep and 30 goats traded March 12. All classes sold steady to higher in a light run.
Lambs lighter than 70 lb. were $120-$151 per cwt. Lambs 70 to 85 lb. were $120-$139.50, 86 to 105 lb. were $112-$144 and 105-119 lb. were $117-$124. Lambs heavier than 120 lb. were $75-$95 per cwt.
Rams were $512-$84 per cwt. and cull ewes $48-$76 per cwt.
Good kid goats were $150-$190 per cwt. Nannies were $55-$130 per cwt. and mature billies were $150-$170.
Ontario Stockyards reported 1,436 sheep and lambs and 61 goats traded. Well fed light lambs saw strong prices. Other lambs traded steady to stronger. Sheep and goats were steady.
