Western Producer Livestock Report

Fed cattle steady

In moderate trade, fed cattle prices were mostly steady.

Packer interest was not as aggressive as sellers would have liked, Canfax said. The Canadian dollar climbed to parity with the U.S. dollar.

The steer weekly average rose six cents to $91.51 per hundredweight. Heifers fell 14 cents to $90.80.

About 21,000 head traded, up four percent from the week before.

Feedlots are current in their marketing, Canfax said.

The cash to futures basis narrowed to $2.95 under compared to $3.90 under the week before.

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Exports to the United States fell three percent from the week before to 10,215 head.So far this year 301,397 head moved south, down 12 percent from last year.

Since April 5, 2008, fed exports have averaged 1,700 head a week lower than the five-year average for the same period, Canfax said.

U.S. fed prices could easily climb high enough this month to encourage more Canadian fed cattle to move south to American plants.

The U.S.-South Korea deal to ease restrictions on American beef continued to run into political opposition in Korea.

Beef stronger

U.S. Choice cutouts rose $1.65 to close May 15 at $156.83 US while Select rose six cents to $152.16, Canfax said.

Wholesale Calgary prices were $153-$155 Cdn and the Montreal market was at $160-161.

Feeder prices rise

About 39,800 feeder cattle traded. That was down from the week before, but 35 percent more than the same period last year, Canfax said.

There was strong demand with the steer average $2.29 higher than the week before and heifers $1.67 higher.

Steers less than 600 pounds were $2.19 higher. Steers weighing 600-900 lb. and were up $1.86 and 800-900 lb. were up $3.87.

Heifers lighter than 600 lb. were $1.33 higher and 600-900 lb. averaged $1.59 higher.

Heifers heavier than 900 lb. rose $2.22.

Feeder exports totalled 14,618, up 14 percent from the week before.

Exports in 2008 are up 64 percent over last year at the same time.

Bred cows averaged $662.50 in light volume.

That was $106.67 lower than last week and $153.75 lower than the same week a year ago, Canfax said.

Cow-calf pairs averaged $855.42 for the week, down $113.75 from the same week last year.

Feedlot marketing up

The May 16 U.S. Department of Agriculture Cattle on Feed report showed April feedlot marketings up 11 percent from last year.

That was above trade expectations.

The number of cattle put in feedlots during April was two percent less than in 2007, but that was above projections.

Total feedlot population May 1 was 1.46 million head, down one percent from last year, but analysts had expected a bigger drop.

The report was expected to support prices in the nearby futures contract but lower deferred contracts.

Hogs near seasonal high

U.S. cash hogs rose until midweek but pulled back by the close because traders believed retail outlets had the supply they needed for Memorial Day.

Slaughter plants have trimmed hours because hog supplies are tight and prices have risen faster than pork prices.

Iowa-southern Minnesota cash hogs rose as high as $62 US per cwt. last week, but settled at $60.50 to $61 May 16, up from $59.50 May 9.

The U.S. composite pork carcass cut-out value rose to $81.89 May 16, up from $78.77 May 9.

U.S. slaughter for the week ending May 17 was estimated at 2.07 million, down from 2.09 million the week before but 5.5 percent more than last year.

Year to date, U.S. hog slaughter is up 10 percent from last year.

Bison steady

The Canadian Bison Association said prices continued at strong levels. Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.05 to $2.25 per lb.

Heifers were to $1.95 to $2.10 per lb.

Cull cows and bulls were 80 cents to $1 per lb. hot hanging carcass.