Fed values rise
Fed cattle prices jumped $2.50-$3.25 per hundredweight higher last week with U.S. beef cutouts leading the parade by climbing almost $8 higher, said Canfax.
The Canfax weekly average on steers was $87.84 per cwt., up $3.25, and heifers were $86.95, up $2.50.
About 22,500 head sold, 11 percent more than the previous week.
A significant number of fed calves are now hitting the market.
Combined with cleanup yearlings, this week’s price ranges were wide.
The cash to futures basis was $3.67 under compared to $5.64 under the week before.
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Fed exports to the United States totalled 10,182 head, down 32 percent from the week before and 38 percent lower than last year.
Since October 2007, about 288,000 fewer feeders have been placed in Canadian feedlots compared to last year, while marketings for the same period are around 160,000 head lower. That works out to about 10,000 head a week fewer fed cattle in the show lists, Canfax said.
With a tightening basis and rising freight costs, exports will continue to drop.
However, domestic demand should be able to consume fed supply at this level and maintain a Canadian price advantage. Expect a stronger fed market in May, Canfax said.
Futures prices were supported by news that South Korea will reduce its restrictions on U.S. beef.
Beef prices rise
Beef movement improved last week in the United States and prices rose.
U.S. Choice cutout gained $7.97 to close April 17 at $149.91. Select gained $6.43, to $147.59.
Buyers may be waiting for an indication of consumer demand before investing in more product or they may take on more product in fear of prices rising further, Canfax said.
Market analysts expect the supply of slaughter-ready cattle to decline going into May and June.
May is typically the start of the grilling season so there is little risk in buying product now, when prices are at five year lows.
In Canada, interest in middle meats is starting to pick up. Ribs and loins are at a five year low for this time of year and have a long way to go before consumer resistance is met, Canfax said.
The Calgary wholesale market rose $2 to $145-$147 per cwt., while the Montreal wholesale market was steady at $150-$151.
U.S. cattle on feed
The high cost of feed has affected U.S. feedlots.
The U.S. Department of Agriculture report of April 18 showed 11.684 million head of cattle in feedlots as of April 1, the same as a year ago. Analysts had expected a slight increase.
March placements were 1.736 million head, down 11 percent from a year earlier, and the lowest March placements since 1998. March cattle marketings were 100 percent of a year ago, which was more than analysts had expected.
Feeders strengthen
Feeder cattle prices gained 50-75 cents per cwt. last week with a large volume.
Grass type stockers 300-600 pounds saw a premium over 600 lb. and heavier feeders.
Steers 300-400 lb. dropped $2.25 per cwt. on a declining supply of quality animals.
Steers 400-700 lb. were 25 cents higher, while 700-800 lb. were $1 higher with strong demand.
Steers 800-900 lb. and heavier rose 50 cents.
Heifers 300-400 lb. rose 75 cents and 400-800 lb. saw strong demand with prices $1-$1.50 higher.
Heifers 900 lb. and heavier rose 50 cents.
Volume increased 33 percent from the week before to 46,752 head. That was five percent more than last year.
Exports to the U.S. two weeks ago totalled 12,501 head, 22 percent lower than the previous week but 45 percent higher than last year.
Canfax expects the number of cattle coming to auction will decline as the spring run ends, helping to keep prices at current levels.
Prices until the end of the month should remain steady for 400-800 lb. grass types and for 800 lb. and heavier bunk replacers.
D1, 2 slaughter cow prices rose $2.50 and D3, 4 cow prices also improved. Butcher bulls climbed $2.
Slaughter cows and bulls should continue strong until the end of April.
Hog prices strengthen
Hog prices rose as packers maintained a strong slaughter pace fueled by good profit margins.
Pork prices rose on anticipation of warmer weather and stronger demand from the grilling market. Also, U.S. pork exports are running well ahead of last year.
There was expectation that hog prices could rise $3-$4 per cwt. this week.
Good news about U.S. beef exports to Korea and reduced numbers of cattle going on feed were also expected to support red meat prices.
Iowa-southern Minnesota cash hogs showed good strength last week with prices reaching $48 US per cwt., up from $44.50 April 11.
The U.S. composite pork carcass cut-out value rose to $67.50 April 18, up from $62.62 April 11.
U.S. slaughter for the week ending April 19 was estimated at 2.32 million, up from 2.24 million the week before and 16.7 percent higher than last year.
Bison bulls rise
The Canadian Bison Association said demand for slaughter cows and bulls improved.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2-$2.25 per lb.
Heifers were $1.90-$2.10 per lb.
Cull cows and bulls averaged 90 cents per lb. hot hanging carcass.
Lamb prices steady
Ontario Stockyards reported 2,986 sheep and lambs and 236 goats sold April 14.
Lambs prices dropped $5-$8 per cwt. Sheep dropped $5. Goats held firm.
Beaver Hill Auction in Tofield, Alta., reported 790 sheep and lambs and 108 goats traded April 14. All sheep were down $10-$15. Goats were steady.
Lambs lighter than 70 lb. were $124-$132 per cwt.
Lambs 70 to 85 lb. were $118-$148, 86 to 105 lb. were $108-$145 and 106 lb. and heavier were $95-$125.
Rams were $40-$80 per cwt. Cull ewes $31-$55 per cwt. and bred ewes were $52-$88. Ewes with lambs were $75-$175 per family.
Good kid goats were $150-$210.
Nannies were $60-$150 per cwt. and mature billies were $127.50-$158. Goat families were $100-$200 per family.
