Fed prices edge higher
In light trade steers were $81.91, up 58 cents per hundredweight and heifers were $81.66, up 72 cents, Canfax said.
Volume was about 16,000 head, down 12 percent from the previous week. A lot of the showlist was carried over. Discounts for overweight and older than 30 month animals were noted. Also, moderate mud tag lowered some bids.
The cash to futures basis was $9.65 under compared to $12.48 under the week before. Fed export volume dropped five percent to 18,807.
February 2008 cattle-on-feed inventories are 13 percent lower than last year with record low January placements. Feedlot supply is tightening. Buyers will have to try harder to secure inventory.
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Beef price rises
Cut-out values were steady to higher. In the U.S., Choice cutouts ended the week up seven cents to $150.43. Select closed at $148.11.
Canadian cut-out values have increased since mid-November. AAA was up $2.65 and AA climbed $5.64 last week. Cut-out values are still about eight percent below last year.
The Calgary wholesale market for delivery this week was $1 higher at $139-$140.
Feeder prices higher
Volumes picked up with prices $2.50 per cwt. higher than the week before, Canfax said.
Steers 300-400 pounds rose $4.25 per cwt. and heifers rose $3.25.
Steers 400-700 lb. rose $2.25-$3. Steers 700-900 lb. and heavier rose $1.50-$1.75. Heifers 400-900 lb. and heavier were $2-$2.75 higher.
Volume was 39,334 head, up 50 percent from the week before.
Exports to the U.S. two weeks ago were 17,006 head, up 27 percent from the previous week.
Record low placements indicate prices are too high for western Canadian feedlots, suggesting continued record exports to the U.S. But without domestic demand, prices will soften as March approaches, Canfax said.
D1, D2 slaughter cow and butcher bull prices rose $2.25 per cwt. and Canfax expects demand will remain strong.
Hogs rise
Available hog supplies tightened a little, adding support to hog prices.
Ron Plain from the University of Missouri noted there has been almost no move to reduce the American sow herd. It will be at least a year before pork production declines, he said in his weekly report.
“In the past, it has been 15-18 months from the time producers started losing money until pork production was reduced. Based on John Lawrence data from Iowa State University, the average cost hog producers started losing money in October 2007.”
Iowa-southern Minnesota cash hogs traded at $44 US per cwt. Feb. 15, up from $43.50 Feb. 8.
The U.S. composite pork carcass cut-out value was $63.47 Feb. 15, up from $61.16 Feb. 8. U.S. slaughter for the week ending Feb. 15 was estimated at 2.23 million, up from 2.21 million the week before, and 10 percent higher than the year before.
Bison prices rise
The Canadian Bison Association said Grade A carcasses from youthful bulls in the desirable weight range in Canada were $1.95 per lb. Heifers were $1.95 per lb.
Cull cows rose to 70 to 85 cents and bulls 70 cents to $1 per lb., hot hanging carcass.
Lambs steady
Ontario Stockyards reported 1,087 sheep and lambs and 93 goats traded last week at steady prices.
Beaver Hill Auction in Tofield, Alta., reported 718 sheep and lambs and 32 goats traded Feb. 11. Lamb prices rose. Cull ewes and rams fell $10. Goats were steady.
Lambs lighter than 70 lb. were $118-$143 per cwt. Lambs 70 to 85 lb. were $120-$134.50, 86 to 105 lb. were $115-$135 and 106 lb. and heavier were $98-$121.50.
Rams were $42-$61.50 per cwt. Cull ewes $30-$55 per cwt. Bred ewes were $55-$98. Good kid goats were $150-$207.50 per cwt.
Nannies were $80-$117.50 per cwt. and mature billies were $129-$148.
