Fed cattle edge higher
In light trade, average prices for fed cattle rose 25 cents per hundredweight from the week before, said Canfax.
The weekly average on steers was $81.33 per cwt., up 30 cents. Heifers were $80.94, up 26 cents.
Sales volume was about 18,000 head, down 23 percent from the week before.
Live weights were slightly higher than the week before.
Cattle fed a short time saw significant discounting while long fed, higher yield cattle saw decent flat bids, said Canfax.
The cash to futures basis was $12.48 under compared to $10.32 under the week before. Fed export volume was steady at 19,898 head.
Read Also
USDA’s August corn yield estimates are bearish
The yield estimates for wheat and soybeans were neutral to bullish, but these were largely a sideshow when compared with corn.
Record low cattle-on-feed numbers combined with low fourth quarter 2007 placements should see fed cattle supplies start to tighten, said Canfax.
Feedlots should start to build market power and prices will move higher in March.
Packers push beef higher
By cutting slaughter, American packers were able to drive up beef prices.
The Choice cutout rose by $6.91 US per cwt., to close Feb. 7 at $150.36. Select rose $6.76 to $144.44.
Canada’s federally inspected slaughter for January was nine percent lower than in it was 2007.
The Calgary wholesale market for delivery this week was steady at $137-$139 Cdn.
Feeders bounce back
Feeder cattle volume improved with warmer weather in Alberta, said Canfax.
Prices rose $1.50 per cwt. over the previous week’s light trade.
Comparing the week ending Feb. 8 with the week ending Jan. 25, prices were up only 25 to 50 cents per cwt.
Light stockers 400-600 lb. for the week ending Feb. 8 were up 50 cents compared to the week ending Jan. 25.
Midrange 600-700 lb. feeders saw strong buyer demand. Feeders 800-900 lb. and heavier were relatively steady.
Selective demand and quality has widened the price spread.
Volume was 26,186, up 94 percent from the chilly week before, but 10 percent lower than the same week last year.
Exports to the U.S. rose 14 percent from the week before.
High production costs and rising volume will pressure feeder prices lower for at least the next couple of weeks, said Canfax.
If fed prices improve, the downward feeder price trend may be delayed but not avoided.
D1, D2 slaughter cow prices rose $1.75 per cwt. last week. Butcher bulls rose $2.50.
Canfax expected strong demand and steady prices this week for fleshy D1, D2 slaughter cows. Butcher bulls should be steady till the end of the month.
Hog prices gain
Cold and snow in the U.S. impeded hog delivery again last week, forcing packers to increase bids to get immediate slaughter supplies.
But pork prices were steady for most of the week, resulting in tighter packer margins. There was talk that packers are having trouble moving all the pork from recent large slaughters and hog prices might decline this week.
Canadian hog producers have been reducing the breeding herd for months. There is talk that American producers are now starting to reduce sow numbers as well but the trend is gradual.
Ron Plain of the University of Missouri noted in his weekly commentary that futures prices mid week indicated a surprising $55 and $56 per cwt. live price for the next year.
His view of production prospects and competition from other meats indicates weaker prices.
“Unless hog slaughter is sharply lower than now indicated or we have spectacular growth in demand, live hog prices in 2008 are likely to average in the low $40s live,” Plain said.
“Our concern is that the future market indicated prices may provide signals that the hog herd does not need to be downsized much, if any, from the current level of production.”
Iowa-southern Minnesota cash hogs traded at $3.50 US per cwt. Feb. 8, up from $41.50 on Feb. 1.
The U.S. composite pork carcass cutout value was $61.16 Feb. 8, up from $60.72 Feb. 1.
U.S. slaughter for the week ending Feb. 1 was estimated at 2.21 million, down 2.6 percent a week earlier, but 12.9 percent higher than last year.
Bison prices rise
The Canadian Bison Association said prices were up with grade A carcasses from youthful bulls in the desirable weight range in Canada fetching $1.95 to $2 per lb.
Heifers were $1.75 to $1.95 per lb.
Cull cows were 70 to 72 cents and bulls 60 to 65 cents per lb. hot hanging carcass.
Lambs steady
Ontario Stockyards reported 1,577 sheep and lambs and 118 goats traded last week. Most lamb classes traded steady with overweight types discounted. Sheep were $5 per cwt. higher and goats were steady.
