Western Producer Livestock Report

Has market peaked?

The Alberta fed cattle market rose last week in spite of a rising Canadian dollar and lower U.S. fed and futures markets.

U.S. cattle futures sank when commodity funds pulled money from the market after analysts began talking about stifled demand caused by the highest wholesale beef prices in 31/2 years.

U.S. cattle and beef prices had pressed upward because of tight supply, but feedlot data indicates market-ready supply should begin to climb in the next 30 days.

However, with Canadian feedlots current in their marketing, prices in Canada didn’t drop.

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Canfax said steers traded $100-$104.70 per hundredweight live and $169-$172.30 on the rail while heifers traded $100-$104.30 live and $168.35-$171.85 on the rail.

For the week, steers averaged $102 per cwt., up 75 cents, and heifers averaged $101.10, up $1.25.

Yearlings traded at the higher end of the range as more calves showed up in the offerings.

Good interest was evident from Canadian and U.S. buyers and producers were willing sellers.

Volume for the week was slightly more than 20,000 head, keeping feedlot inventories current.

The Canada to U.S. cash-to-cash basis narrowed to $8.85 under, the narrowest basis since July 2006.

Fed cattle exports for the week ending April 6 fell to 16,871 because of the Good Friday holiday.

Canfax said continuing tight supplies should support the market in the short term.

However, larger market-ready numbers are coming. Placements into Canadian feedlots in the first three months of this year are up 27 percent over last year at the same time and up 14 percent over 2005. In June and July the supply of market-ready cattle is expected to be larger than in the last two years.

Beef prices stronger

The U.S. beef market rose to keep pace with the previous week’s strong live cattle prices.

The Choice cutout on April 12 was $172.47 US, up $15.37 from the previous week, while Select rose $11.17 to $159.75.

Box beef movement was light to moderate. The Choice-Select spread widened to $12.72 from $9.09.

In Canada demand is just beginning to improve. Prospects for improving weather should increase demand for middle meats while hips and chucks may see downward pressure.

The Calgary wholesale market for delivery this week was higher at $171-$173 Cdn.

Feeder markets stronger

Steer and heifer calves rose 75 cents-$4.25 last week and 500-700 pound grass cattle were $2.50-$5 higher.

Heavy steers and heifers were $1-$4 higher. The price spread is becoming more evident and most likely due to the quality of cattle going through the ring.

Limited offerings and good demand for butcher cows saw prices jump.

D1, 2 cows rose $6 and D3 cows climbed $5.50. Butcher bulls were up $2.

For the week ending April 7, feeder cattle exports totalled 10,308 head, 13 percent more than the previous week.

Auction market volume of 30,700 head was nine percent higher than the week before and 48 percent over last year.

Canfax said the strong Canadian dollar might affect feeder cattle trade with the United States. Problems could compound if the futures market does not recover.

In stock cow trade, bred cows were mostly $800-$1,100, plain types $500-$750. Bred heifers were mostly $800-$1,000 and plain types $525-$750. Cow-calf pairs were $850-$1,100, with tops to $1,300 and plain types $600-$800.

Hog prices jump

Hog numbers and weights usually slip this time of year, helping keep U.S. cash hog markets firm. If pork exports continue at the recent strong pace, cash hog prices should move higher as hog numbers slip further.

Recent peaks in beef prices should cause retailers to feature more pork.

However, pork prices have failed to keep up to hog price gains, cutting into packer profits.

Iowa-southern Minnesota hogs traded April 13 at 48.50 US per cwt., up from $46 April 5.

The U.S. composite pork carcass cut-out value was $68.16 on April 13, up from $65.24 April 5.

Federal slaughter in the U.S. last week was 19.71 million, down from 2.052 million the week before.

Bison steady

Top quality carcasses in Canada from bison bulls younger than 30 months in the desirable weight range were $1.60-$1.90 Cdn per lb.

The weighted average was $180.69 per cwt. rail grade. Rail prices for quality youthful bulls older than 30 months were $120-$145 per cwt. Cull cows were 10 to 20 cents per lb. live.

The U.S. Department of Agriculture reported April 10 that hot carcasses from bulls younger than 30 months dipped to an average of $180.68 US for March, down from $181.75 in February. Cull cows climbed to $115.68 per cwt.