Fed prices pushed higher
Fed cattle trade last week was slow to develop and weekly volumes fell 31 percent from the week before because producers wouldn’t sell until bids improved.
Prices strengthened late in the week and ended with averages $2.60 per hundredweight higher on steers and $3 higher on heifers, said Canfax.
Volume dropped to less than 20,000 head.
Alberta prices Feb. 10 were steers $85.25-$88.85 per cwt., flat rail $147.55-$150 and heifers $88.85, flat rail $150.
Canfax said price momentum should continue to be fueled by the nearing March 7 deadline for live trade with the United States.
Read Also
Russian pulse trouble reports denied
Russia’s pulse crop will be larger than last year, which won’t help prices rally from their doldrums.
Basis levels narrowed to -$22.50 from the previous week’s -$25.25 but are still well off the mark of a traditional pre-BSE basis of $8 to $9 under. Even accounting for higher freight rates today, there’s still room to move, Canfax said.
There was some headway on resuming America’s beef trade with Japan when the latter recognized a protocol for detecting cattle ages.
American cutouts rose $5 US on Choice and $6.50 on Select. Tyson said it would gradually reopen the four beef plants it temporarily closed last month because of poor margins.
U.S. cutouts are 19-23 percent higher than February last year. Canadian cutouts have improved since last year but still lag the U.S. by two to three percent.
Canadian cutout two weeks ago was down $5 Cdn on AAA and $4 on the AA.
Canfax expects the cutout will improve following the gain in the U.S.
Canadian kill two weeks ago increased by 9,000 head to 78,000 in federal plants Ð the largest it’s been this year and the largest since early November.
The cow kill also rose to more than 10,000 head.
Calgary wholesale prices for this week’s delivery rose by $1-$2 with the range narrowing up to $145-$149 per cwt.
Union members at Cargill’s High River, Alta., plant voted in favour of a four-year agreement last week. Union and management are still negotiating at Tyson’s Lakeside Packers in Brooks, Alta.
Feeder prices rise
Alberta auction market volumes fell with about 38,000 head trading, 29 percent lower than the week before, but up 58 percent from a year ago.
Prices rose again as buyers continue to feed off positive news regarding the border opening, said Canfax.
Buyer interest on heavier cattle picked up, while demand on lighter cattle remained strong.
Steers were $1-$2 per cwt. higher, while heifers were $1.25-$2.75 stronger. Feeder prices are anticipated to continue sideways or rise, Canfax said.
Feb. 1 cattle on feed in Alberta and Saskatchewan totalled slightly more than one million head, up 22 percent from last year but one percent lower than last month.
Placements of 142,047 were substantially larger than January 2004, but that month reflected the uncertainty following the BSE case in Washington.
Comparing placements to pre-BSE data, January 2005 was 87 percent of 2003 and 92 percent of January 2002.
In Alberta and Saskatchewan, 187,141 head were slaughtered in January, down two percent from a year ago, while the Canfax survey group marketings were 137,879 head, five percent smaller than last year.
D1, 2 cows rose $1, averaging $24.50. Butcher bulls traded slightly stronger, up 50 cents at $23.50 per cwt.
Slaughter cow and bull prices may ease now that USDA has stated it will delay the movement of beef from cattle older than 30 months.
Stock bred cows were $400-$600 on medium quality and $600-$1,000 on excellent quality. Bred heifers that were traded in central Alberta ranged between $700-$1,000.
Cow-calf pairs in central and southern Alberta were $800-1,100.
Hog prices weaken
Seasonal declines in pork demand and the beginning of Lent resulted in lower hog prices, Manitoba Agriculture said.
The average Iowa-Minnesota daily direct hog price (51-52 percent lean carcass converted to live weight) fell to $50.21 US per cwt. on Feb. 10. The wholesale cut-out price fell by about $1.18 per cwt. to $70.87 per cwt.
The CME hog futures price for February fell to a three-month low.
U.S. hog slaughter has been running ahead of the same pace in 2004.
For the week ending Feb. 4, Manitoba five kilogram pigs received top bids of $80.63 Cdn per pig while contract prices reached highs of $50.98 per pig.
Spot prices for 23 kg pigs hit a high of $106.36 per pig and top price for contracts was $79.43 per pig. The U.S. national direct delivered price for five kg pigs, converted to Canadian dollars, were $39.70-81.25 per pig and the 23 kg pigs were $73.19-$109.16 per pig.
Sheep steady
Ontario Stockyards reported 2,300 sheep and lambs and 205 goats traded. All classes of sheep, lambs and goats sold steady.
