Local market beats U.S.
Canadian fed cattle prices rose despite a falling American market, weaker futures and a stronger loonie, Canfax said.
A tight supply of market-ready cattle resulted in a small show list and prices rose $1.50-$2 per hundredweight from the previous week.
U.S. markets dropped by $1.50-$2 per cwt. March 27.
Sales from March 20 are included in this week’s total and have increased volume slightly.
The Canfax weekly average on steers was $87.28, up $1.61 per cwt. and heifers were $86.38, up $1.96.
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Sale volume was about 15,000 head, seven percent smaller than the previous week.
The cash to futures basis was $2.94 under compared to $5.08 under last week.
USDA revised its 2007 and 2008 live trade volumes.
About 16,655 head were exported to the U.S., down two percent from the previous week.
Prices this week are likely to succumb to the downward pressure from U.S. markets and the strong loonie. But later in April, with a tight fed supply and an increase in domestic beef movement, fed prices should rise, Canfax said.
Canadian beef rises
The slowing U.S. economy has pushed American consumer confidence to the lowest level in five years. Analysts say this could cut into beef demand.
U.S. cut-out values fell for the fourth consecutive week.
The Choice cutout fell $2.46 to close at $139.05 US March 27 and Select fell 91 cents to $138.80.
The Choice-Select spread is historically narrow at 25 cents.
Canadian beef markets fared better.
The Calgary wholesale market for delivery this week rose $3 Cdn to $143-$145.
The Montreal wholesale market rose $1.50 to $150.
Feeders mixed
Feeder cattle volumes were lighter with mixed prices, Canfax said.
Steers prices rose $1 per cwt. and heifers dropped 50 cents.
The March 19 results mask some of the price improvement seen last week.
Steers 300-600 pounds gained 50 cents per cwt. and 600-900 lb. and heavier steers rose $1-$2.
Heifers 300-400 lb. fell $1.75. All other heifers traded barely steady to $1 a cwt. lower.
Sales from March 19 are included in this week’s total, adding 14,000 head to the volume, which was up 21 percent from the week before to 39,236 head, but down 28 percent from the same week last year.
So far this year sales volume is down 17 percent from last year.
About 19,225 feeders went to the U.S. last week, one percent less than the previous week. So far this year exports are up 63 percent from last year. Exports might soon surpass weekly auction volume.
D1, 2 slaughter cow prices and butcher bulls were steady.
Slaughter cow supply should remain steady until the end of April as spring calving winds down.
Strong packer demand for slaughter cows and butcher bulls should see prices steady for the next couple of weeks, Canfax said.
Record U.S. hog herd
The quarterly U.S. Department of Agriculture hogs and pigs report showed the hog herd as of March 1 at 107 percent of a year ago, well above the average trade estimate of 104.4 percent and the range of estimates from 103.1 to 105.6 percent.
The report also showed that American producers have not cut their breeding herd despite unprofitable hog prices.
The breeding herd was pegged at 100 percent of a year ago. Hog marketings were at 107 percent of a year ago, above the average estimate of 105.2 percent.
The news of a record large number of pigs on farms pressured hog futures lower. There are also large supplies of frozen pork in storage.
In the cash market, an aggressive slaughter pace in the U.S. helped support hog prices.
Analysts think the cash price might be supported by the prospect of warmer spring weather and the start of grilling season. Also, U.S. pork exports are strong thanks to the weak American dollar.
The Iowa-southern Minnesota cash hog trade rose to $40 US per cwt. from $38 March 20.
The U.S. composite pork carcass cut-out value was $56.08 March 28, down slightly from $56.25 March 20.
U.S. slaughter for the week ending March 29 was estimated at 2.26 million, down from 2.31 million the week before and eight percent higher than last year.
Bison rises
The Canadian Bison Association said the market was a little stronger last week.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2-$2.20 per lb.
Heifers rose to $1.90-$2.15 per lb.
Cull cows were 70-85 cents and in light trade bulls were 60 cents per lb. hot hanging carcass.
Federally inspected slaughter for February totalled 1,811, up from 1,340 last year. For January and February, slaughter is 3,671, up 50 percent from the same time last year.
Exports to the U.S. of fed and feeder bison for the first two months are up 266 percent.
Lamb prices rise
Ontario Stockyards reported 623 sheep and lambs and 77 goats sold March 24.
A light run of lambs sold at strong prices. Sheep prices rose $5 per cwt. and goats were firm.
