Fed cattle lower
A lower Canadian dollar and higher live cattle futures promised stronger prices last week, but the cash market didn’t take the cue.
Feedlots wanted $150-$152 per hundredweight but packers bids were $148-$149. Many cattle were passed, but feedlots remain fairly current in their marketing, said Canfax. Prices were 50 cents-$1 higher than the week before.
Steers traded $86.35-$87.50 per cwt., averaging $86.93 live and $145-$147 on the rail.
Heifers were $86-$87.30, averaging $86.66 live and $145-$147 on the rail.
The cash to futures basis weakened to $18.86 under compared to $16.31 under the week before.
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Fed cattle sales for the week were just over 16,000 head.
Fed cattle exports totalled 11,881 head two weeks ago, down from 12,638 the previous week and 18,807 last year.
Cattle on feed data shows feedlots marketed heavily in January and slaughter volumes were also large.
Supplies through February should be manageable.
The Alberta-Saskatchewan on feed report said 950,679 head were on feed as of Feb. 1, an increase of six percent over last year but down eight percent from Jan. 1.
Placements in January were up 18 percent over last year.
Marketings by the Canfax group in the month rose six percent to 173,395 head. Other disappearance totalled 15,683, an increase of 67 percent over last year.
Strong demand for D1, D2 slaughter cows lifted prices by 86 cents per cwt. to average $43.61.
Bred cow sales should start to taper off but an increase in calving culls should hold volumes steady through to March.
Butcher bulls rallied $2.30 per cwt.
Cows and bull prices would be steady as inventories tighten creating good price prospects until late spring.
Beef price mixed
Canadian AAA cutouts for the week ending Jan. 30 dropped $2.85 from the previous week. AA cutouts were $3.01 lower.
The Calgary wholesale prices for delivery this week rose 50 cents to $157-$160 per cwt. Montreal dropped $1 to $165.
Byproducts struggled at $60-$95.
U.S. cutouts last week fell with Choice down $2.73 to $136.12 US and Select down nine cents to $138.85, said Canfax.
Feeder prices rise
Compared to last year at the same time, the average feeder price was up $14.50, said Canfax.
The heavy interest in grass cattle is two to four weeks early because buyers anticipating tight supply tried unsuccessfully to get the drop on the competition.
Steer calves 300-600 pounds rose $3 from the week before while 500-600 lb. soared $18.52.
Steers 600-700 lb. rose $1.05 while 700-900 lb. prices were $2.07 higher.
Big 900 lb. and heavier steers rose 75 cents.
Heifers 300-400 lb. jumped $4.01 higher, 400-700 lb. rose $1.51. Heifers 700-800 lb. rose $2.33 and 800-900 lb. were up 54 cents. Those 900 lb. and heavier were steady.
Almost 42,000 head sold, up 13 percent from the week before and 60 percent more than the same week last year.
Farmers and backgrounders had their ears to the ground and heard the opportunity, but many just unloaded calves while the weather co-operated to make room for calving or because of short feed, said Canfax.
Bred cows shipped before calving also helped to increase auction volumes.
U.S.-bound exports totalled 10,236 head, up 22 percent from the previous week, but 40 percent lower than last year, said Canfax.
Grass cattle demand will be good into March but volume will likely ease for a couple of weeks while producers focus on calving.
A tighter feeder supply generally will encounter strong demand as more domestic bunk space becomes available and U.S. feedlots, faced with shrinking feeder stocks, get more comfortable with COOL rules, said Canfax.
Feeder volumes are expected to surge in the later half of March when thoughts of seeding force background calves out of farmyards and into auctions.
Expect a bullish feeder market through to mid March.
Bred cows were $600-$950.
Hog prices rise
A couple of Midwest packers added Saturday shifts for the week, increasing the demand for hogs. Pork prices crept higher.
This might indicate improving demand for pork.
Carcass weights edged higher to 269 lb. on the week ending Feb. 7, up from 268.7 the week before and 268.1 the year before.
Iowa, southern-Minnesota cash hogs rose to $45.50 US per cwt. Feb. 13, from $42 Feb. 6.
The U.S. pork carcass cutout value climbed to $57.63 Feb. 13 from $56.83 Feb. 6.
U.S. federal slaughter to Feb. 14 was estimated at 2.24 million, up from 2.22 million the week before, and 0.7 percent more than the year before.
Bison prices
The Canadian Bison Association report was unavailable.
Two weeks ago, grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.40-$2.80, with an estimated average of $2.50 per lb. hot hanging weight.
Heifers were $2.30-$2.60 per lb. with an average of $2.40.
The cull cow and bull average rose to $1.10 per lb., with sales to $1.45. Weight, quality and delivery location affect final price.
Lambs up
Ontario Stockyards reported 1,150 sheep and lambs and 116 goats traded Feb. 9. Lamb prices were higher. Sheep were $5-$7 lower. Goats were firm.
