Fed prices decline
Quality and weight discounts contributed to push weekly average prices about $2.50 per hundredweight lower, said Canfax.
The Canfax weekly average on steers was $79.97 per cwt., $2.78 lower than the week before with heifers at $80.41, down $2.44.
Sale volume rose 29 percent higher, with just under 24,000 head sold.
Exports to the United States rose to 15,057 head, a 52 percent increase from the previous week and five percent higher than the same week last year.
Expect wide pricing and selective bidding relative to quality and weights.
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Surplus pressures beef
Large supplies of competing meat in North America have resulted in steady to lower beef prices, while chicken prices are steady. Pork provides the best margins at retail. The market is also worried that the economic downturn in the U.S. will cause consumers to eat less meat.
The Calgary wholesale market for delivery this week was $2 lower at $138-$140.
U.S. cut-out values moved steadily lower last week on moderate demand, with U.S. packers unable to push boxed beef prices higher.
Choice cutouts ended the week $1.74 US lower, closing at $146.99, Select rose 29 cents, closing at $139.77.
Feeder values drop
Feeder prices were generally $1.50-$2.50 Cdn per cwt. lower, said Canfax.
Sale volumes were strong with 25,143 head moving through the ring, a 48 percent increase from the week before and six percent lower than the same week last year.
Average prices dipped below $100 per cwt.
Light steers at 300-400 pounds fell $3 per cwt.
Steers and heifers 400-500 lb. dropped $1. All other feeder heifers were down $1.50-$2.
Steers 500-900 lb. and heavier were $2-$3 lower.
Feeder exports to the U.S. two weeks ago totalled 10,158 head, up 75 percent from the same week last year.
Canfax expects feeder prices to fall another $1-$2 despite anticipated lower supply. Expect wider price ranges relative to quality and supply.
High feed grain prices will continue to pressure feeder prices lower.
Exports of slaughter cows and bulls totalled 2,938 head.
Slaughter cow prices last week were steady and butcher bulls were $1 per cwt. higher.
D1, D2 slaughter cows prices are expected to trend higher until the end of the month.
Hog prices fall
Hog prices in the U.S. bounced back a bit late in the week as cold air settled on the Midwest leading some buyers to worry that farmers would delay deliveries.
Profitable pork plant margins kept the slaughter pace high. Market-ready hog supply was large.
Iowa-southern Minnesota cash hogs traded at $36.50 US per cwt. Jan. 18, up from $35 Jan. 11.
The U.S. composite pork carcass cutout value closed at $55.54 Jan. 18, steady with Jan. 11.
U.S. slaughter for the week ending Jan. 19 was estimated at 2.42 million, down one percent from the week before but up 17 percent from last year.
Ron Plain of the University of Missouri noted it was only the third week on record that slaughter exceeded 2.4 million head. All three times were in the last five weeks.
U.S hog slaughter since the end of September is up 8.8 percent over last year. Over the last six weeks, slaughter is up 10.3 percent compared to a year earlier.
The circovirus vaccine and a large breeding herd help explain the surge in slaughter.
U.S. carcass prices are roughly $12 lower than at this time last year.
Plain said sow slaughter appears to have picked up in mid-January and sow plants are running near capacity, perhaps an indication that American producers are taking the first steps toward reducing their herds.
But other analysts say significant liquidation in the U.S. is unlikely with the prospect of better prices in the fall.
Bison
The Canadian Bison Association said Grade A carcasses from bison bulls younger than 30 months in the desirable weight range in Canada were $1.80 to $2 per lb.
Heifers were $1.65 in Canada to $1.85 per lb. Cull cows were 60 to 70 cents and bulls were 45 to 65 cents per lb. hot hanging carcass.
Lambs edge higher
Beaver Hill Auction in Tofield, Alta., reported 781 sheep lambs and 108 goats traded Jan. 14.
Lamb prices were higher. Cull ewes and rams were down $10. Goats were steady.
Lambs lighter than 70 lb. were $125-$150 per cwt. Lambs 70 to 85 lb. were $126-$144, 86 to 105 lb. were $115-$137 and 106 lb. and heavier were $104-$120.
Rams were $35-$65 per cwt. Cull ewes $40-$55 per cwt. Bred ewes were $55-$98. Good kid goats were $150-$187.50 per cwt.
Nannies were $50-$111 per cwt. and mature billies were $122-$153.
Ontario Stockyards reported 1,289 sheep and lambs and 85 goats traded last week. Sheep, goats and well-fed light lambs traded steady while heavy lambs were barely steady.
