Weak loonie helps prices
Fed cattle prices jumped higher, propelled by tight fed cattle supplies in Canada and the northwestern states and the sharp drop in the Canadian dollar, said Canfax.
Prices were $1.50 per hundredweight higher than the week before.
Cattle sales closed a day early because of Good Friday. March 20 sales will be reported in next week’s report.
The Canfax average on steers was $85.67 per cwt., up $1.54 per cwt. and heifers were $84.42, $1.68 higher.
Sales totalled 16,000 head, down 24 percent from the previous week. Carryover was minimal and feedlots remained current in their marketing, Canfax said.
Read Also
Government, industry seek canola tariff resolution
Governments and industry continue to discuss how best to deal with Chinese tariffs on Canadian agricultural products, particularly canola.
The cash to futures basis was $5.08 under compared to $4.17 under the week before.
Exports to the U.S. totalled 17,089 head, down four percent from the week before.
Canfax said that as Canadian feedlot supplies dwindle and packers look ahead to summer supply shortages, prices are expected to improve.
On-feed numbers
The U.S. cattle on feed report March 20 said February placements were less than the average of trade estimates while the marketing number exceeded the trade average.
February placements were 1.723 million head, up four percent over last year. That was about 1.5 percentage points lower than what analysts expected. The news was expected to support prices.
The March 1 feedlot supply was up two percent from last year, or 11.853 million head, compared with the expectation of a 2.7 percent increase. February marketings were 1.776 million, up four percent, compared with the trade average of a 1.5 percent increase.
Beef prices fall
U.S. Choice and Select cut-out values fell most of last week. Choice dropped $1.40 US per cwt. to close at $141.92. Select dropped $2.80 to $140.35. Compared to a year ago, Choice is $17 lower and Select is $8 lower.
The Calgary wholesale market for delivery this week was steady at $141-$142 Cdn, and Montreal wholesale prices were steady at $148-$149.
Feeders drift lower
Feeder volume was steady and prices were 50 cents-$1.50 cwt. lower, said Canfax. Feeder cattle sales closed a day early because of the holiday.
Steers 300-400 pounds dropped $3 per cwt. in light trade. Steers 400-900 lb. dropped 50 cents-$1.50 and 900 lb. and heavier dropped $2.
In light trade, heifers 300-400 lb. were steady. Heifers 500-600 lb. fell $1 and 600-900 lb. dipped by 25-75 cents. Heifers 900 lb. and heavier rose 75 cents.
With a short week, sales volume at 32,365 was down 52 percent from the previous week’s unusually large volume, and down 37 percent from the same week last year.
Year to date volume is down 16 percent from last year.
Exports to the U.S. for the week ending March 15 totalled 19,417 head, up 10 percent from the week before.
There is little incentive for feedlots to restock at current feeder prices, Canfax said. Expect prices $1-$1.50 per cwt. lower by the end of March.
D1, 2 slaughter cow prices fell $2.50 per cwt. Butcher bull prices dropped $1.
The D1, 2 slaughter cow supply is strengthening with low quality breds and calving culls hitting the market.
This seasonal increase may have stalled prices, but packer demand is good and prices should remain steady, Canfax said. As bull batteries are replaced, a slight increase in volume may soften prices.
Hog prices steady
An adequate supply of hogs and weaker pork prices kept the market in a negative mood but cash hog bids did not deteriorate much.
The week’s slaughter schedule was shortened by Easter.
U.S. frozen pork supplies are at record highs. The weaker loonie will help prices in Canada.
Iowa-southern Minnesota cash hogs trade dipped slightly to $38 US per cwt. March 20, down from $38.50 March 14.
The U.S. composite pork carcass cut-out value was $56.25 March 20, down from $57.09 March 14.
U.S. slaughter for the week ending March 22 was estimated at 2.31 million up 1.6 percent from the week before and 9.8 percent higher than last year.
Bison steady
The Canadian Bison Association said the market was steady last week.
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.
Lamb prices rise
Ontario Stockyards reported 3,057 sheep and lambs and 767 goats sold March 17.
All classes of lambs sold $10-$15 per cwt. higher.
Sheep prices were firm and goats were barely steady.
