U.S. market stumbles
Falling beef prices, a slow start to grilling season, ample supply of competing meats and rising feed grain costs combined to drive the
U.S. fed cattle market lower, taking the Canadian market down with it.
The Canfax average on steers fell $3.50 to $83.83 per hundredweight with heifers down $3 to $83.39.
Sales volume dropped 20 percent to 12,000 head.
The cash to futures basis was $4.31 under compared to $2.94 under the week before.
About 16,155 head were exported, down three percent from the week before and 22 percent lower than last year.
Read Also
Canada-U.S. trade relationship called complex
Trade issues existed long before U.S. president Donald Trump and his on-again, off-again tariffs came along, said panelists at a policy summit last month.
Packer supply is tightening along with feedlot supply, said Canfax. If packers reduce kill days it will keep a lid on prices.
By month-end the dwindling fed cattle supply in Canada, combined with improved seasonal retail beef movement, should provide a slight domestic advantage over U.S. prices, Canfax said.
Canadian beef holds up
U.S. Choice cutout fell $1.38 to close at $137.67 US and Select dropped $1.80 to $137.
Canadian steer carcass weight trends are similar to last year but
U.S. carcasses since the beginning of February have been 10-20 pounds heavier than 2007 and similar to 2006 weights. This has added to the overall supply of meat and limited cut-out values, Canfax said.
The Calgary wholesale market for delivery this week was steady at $143-$145 Cdn. The Montreal wholesale rose to $150-$151.
Heifers rise
Steer price averages were steady while heifers averaged $1.25 per cwt. higher last week despite a surprisingly large volume, said Canfax.
Feedlots might be concerned that supply is tightening.
Prices started the week strong but lost momentum by midweek.
Steers 300-600 pounds dropped $1 while 600-900 lb. and heavier were 25 cents-$1 higher.
Heifers 300-600 lb. saw good demand and prices 50 cents-$1.25 a cwt. higher, while 600-900 lb. rose $1.50-$2.25.
Heifers 900 lb. and heavier rose 25 cents.
Sales volume rose 24 percent from the week before to 48,725 head. That was up 74 percent from the same week last year and was the largest volume for the week since 1990.
Exports to the U.S. two weeks ago totalled 15,060 head, up 22 percent from the week before and 64 percent higher than last year.
Volumes should start to fall seasonally, Canfax said.
Feeders 700 lb. and heavier should see strong interest related to the contra-seasonal fed market and high fourth quarter futures market.
D1, 2 slaughter cows rose $1.50 and butcher bulls climbed $1.25, Canfax said.
Slaughter cows will continue strong until the end of April.
Butcher bulls should see prices steady to slightly higher for exportables.
Hog prices little changed
Rumours of export buying supported U.S. hog prices last week, but abundant hog supplies and a record amount of pork in storage kept a lid on any flicker of enthusiasm.
The prospect of warmer spring weather and the start of grilling season held the promise of improving domestic demand.
Iowa-southern Minnesota cash hogs started the week as low as $39 US per cwt. but edged higher to $41 April 4, up from $40 March 28.
The U.S. composite pork carcass cut-out value was $59.19 April 4, up from $56.08 March 28.
U.S. slaughter for the week ending April 5 was estimated at 2.28 million, down from 2.36 million the week before and 11.4 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-$2.20 per lb.
Heifers were $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.
Lamb prices drop
Ontario Stockyards reported 2,116 sheep and lambs and 133 goats sold March 31.
Light lambs fell $12-$15 per cwt. Heavy lambs were $5-$8 lower. Most sheep were steady, but fat sheep were under extreme pressure. Goats were firm.
