Fed market drops
Fed cattle prices slid last week with prices 55-90 cents per hundredweight lower than the week before, said Canfax.
A large supply of U.S. beef pressured cut-out prices lower and the Canadian dollar rose.
Quality and yearling cleanup resulted in a wide price spread for steers.
The Canfax average on steers was $84.13, down 55 cents per cwt. while heifers were $82.74, down 90 cents.
The narrow cash to futures basis negated the price support from Canada’s tightening supply, Canfax said.
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About 20,000 head sold, 27 percent more than the previous week.
Most cattle on offer sold, indicating feedlots had little confidence in the market’s ability to strengthen this week.
The cash to futures basis was $4.17 under compared to $4 under last week.
Fed exports to the United States totalled 17,793 head, down two percent from the week before. Year to date exports are down two percent from last year.
Canfax said there is little incentive now for North American packers to slaughter fed cattle over cows.
As domestic supply tightens, packer bids should improve heading toward barbecue season.
Beef price falls
Choice cutout closed $5.64 US lower at $143.32. Select fell $3.64 to close at $143.15, said Canfax.
Large supplies of Choice and lackluster demand at restaurants removed the premium on higher quality cuts. The lower price helped to move more beef.
Tallow values have shown strong price correlations to corn because of its blending capabilities in biodiesel.
High feed costs have increased demand for lower priced blending additives like meat and bone meal for poultry feed. Higher rendering values support margins at packing plants but cannot make up for the lost value on cutouts, said Canfax.
In Canada, snow dampened beef sales in the East. An early Easter might spark spring grilling sales once consumers change focus away from holiday items, Canfax said.
The Calgary wholesale market for delivery this week is $1 lower at $141-$142 while the Montreal market fell $2 to $148-$149.
Feeder prices steady
Feeder volumes continue to climb and prices held steady.
Steers and heifers 300-400 pounds rose $1, said Canfax.
Grass type steers 400-600 lb. fell $1-$2 while 600-900 lb. steers were mostly steady.
Heifers 400-500 lb. were $2 lower, while 500-800 lb. heifers were mostly steady.
Heifers 800-900 lb. fell $1-$2.
Sale volume rose 41 percent, including one large sale, to 67,600 head, up 18 percent from the same week last year.
Exports to the U.S. for the week ending March 8 were 17,579 head, 60 percent more than the same time last year.
Downward pressure on feeder prices can be expected with large volumes and light domestic demand.
D1, 2 slaughter cows were $44.53 per cwt. and butcher bulls were $49.55, said Canfax.
Comparing the week’s average prices for bred cows and slaughter cows, there is little or no added value for the bred cow.
D1, 2 slaughter cows and butcher bulls are following last year’s trend. Tight supplies should support prices going into spring and summer.
Hog prices lower
A surplus of pork drove prices down, causing packers to drop their bids.
This week’s slaughter schedule will be shortened by Good Friday. Good packer margins and plentiful hog supply have pushed the slaughter pace this year, resulting in a pork surplus.
Iowa-southern Minnesota cash hogs traded at $38.50 US per cwt. March 14, down sharply to $40 from $40.50 March 7.
The U.S. composite pork carcass cut-out value was $57.09 March 14, down from $59.46 March 6.
U.S. slaughter for the week ending March 14 was estimated at 2.27 million, up 1.9 percent from the week before and 6.3 percent higher than last year.
Bison prices rise
The Canadian Bison Association said prices and demand rose.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2-$2.15 per lb.
Heifers rose to $1.90-$2.05 per lb.
Cull cows were 70-72 cents and in light trade bulls were 60 cents per lb. hot hanging carcass.
Lambs steady
Ontario Stockyards reported 2,450 sheep and lambs and 276 goats sold March 10.
All classes of lambs and goats sold actively at steady prices. Sheep traded barely steady to $5 cwt. lower.
Beaver Hill Auction in Tofield, Alta., reported 1,257 sheep and lambs and 207 goats traded March 10. Old-crop lambs and sheep were steady and goats were mostly steady.
Lambs lighter than 70 lb. were $132-$189 per cwt.
Lambs 70 to 85 lb. were $128-$189, 86 to 105 lb. were $120-$168 and 106 lb. and heavier were $100-$125.
Rams were $45-$80 per cwt. Cull ewes were $30-$55 per cwt. Good kid goats were $160-$190 per cwt.
Nannies were $54-$117 per cwt. and mature billies were $107.50-$148.
