Fed market stronger
Optimism in the stock market and a weak U.S. dollar helped live cattle futures strengthen. In Canada, fed prices were $2.25-$2.50 per hundredweight higher than the week before.
A tight market-ready supply and positive packer margins had buyers interested, Canfax said.
The average Canfax price on steers was $94.93 per cwt., up $2.64 compared to the previous week, and heifers rose $2.34 to average $94.30.
Sale volume was nine percent smaller than the week before at about 19,000 head, but the show list was all sold.
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The cash to futures basis weakened to $9.89 under compared to $14.99 under the week before.
The fed calves that performed well during the second half of 2008 were heading toward an early kill, but cold conditions in the first quarter of 2009 have pushed them back to around mid-April, Canfax said.
American packers are expected to slow chain speed to clean up freezer inventories as they face uncertain wholesale prices.
Alberta D1, 2 cow prices were $41.50-$59 with an average of $49.29, up 52 cents, Canfax said.
Butcher bulls were $46-$72 with an average of $62.51, up $1.02.
Cow slaughter is down 12 percent year to date while bull slaughter is down 53 percent.
Most producers have likely culled aggressively before calving and probably have only minimal offerings available.
With lower non-fed production and trim product still in high demand, cow prices should continue to be at a premium.
Beef stronger
Canadian AAA cutouts the week of March 6 were $4.95 higher than the previous week. AA cutouts were $3.15 higher than the previous week.
The Calgary wholesale market for delivery this week rose $4 to finish at $170. Montreal rose $2 to $174.
Retail beef demand is average but will soften as Easter approaches, Canfax said.
U.S. Choice fell $2.89 US to close at $133.13 and Select was down $1.91 to $133.32.
Feeder prices rise
Alberta auction volume rose 10 percent to 49,073 head.
There was strong interest in all weight classes with calves and grass types seeing the most price increases, Canfax said.
Steers 600-800 pounds traded $3-$3.80 higher and heifers in the same range were $2.30-$2.35 higher.
Steer calves 300-500 lb. rose $3.70-$4.40, while heifers were steady to $2.45-$3.80 higher.
Overall, steers averaged $2.81 higher and heifers were $2.34 higher.
As spring seeding approaches, volumes may start to taper off, but prices will likely be steady to higher, Canfax said.
Bred cows traded lower, but quality animals still fetched a premium.
Bred cows averaged $826.58, down $72.42. Cow-calf pairs averaged $1,025, up $230.
U.S. cattle on feed
There were 11.228 million cattle in U.S. feedlots as of March 1, down five percent from the year before and the smallest supply for that date since 2005.
A smaller supply would normally mean higher cattle prices, but poor beef demand has limited the upside potential. Also, cattle are being slaughtered at a heavier weight, meaning there is more beef per animal.
USDA put February placements at 1.678 million head, down three percent. February marketings were 1.682 million head, down five percent.
Hog prices edge lower
U.S. packers had surplus supplies following a period when a major plant was closed. Packer margins were positive but pork prices were not strong enough to coax higher bids for hogs.
Iowa-southern Minnesota cash hogs fell to $41 US March 20, down from $45-$45.50 March 13.
The U.S. pork carcass cut-out value peaked at $60.80 March 19 but fell to $58.73 March 20, compared to $59.55 March 13.
U.S. federal slaughter to March 21 was estimated at 2.16 million, down from 2.15 million the week before, and 6.4 percent down from the year before.
Bison prices steady
The Canadian Bison Association said prices were steady, but marketers report top-end cuts sales are sluggish as the recession squeezes consumers.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.40-$2.70 Cdn, with an estimated average of $2.40 per lb. hot hanging weight. Heifers were $2.30-$2.55 per lb. with an average of $2.30.
The cull cow and bull average rose to $1.15 per lb., with sales to $1.45.
Weight, quality, age and delivery location affect final price .
Lambs steady
Ontario Stockyards reported 1,331 sheep and lambs and 95 goats traded March 16. Sheep, lambs and goats sold steady.
