Prices fall
Fed cattle prices fell $1.50-$2.25 per hundredweight from the week before, Canfax said.
Market reaction from the temporary closure of the XL Moose Jaw plant was overshadowed by the negative influence of H1N1 influenza. Cattle markets rebounded by midweek.
The rising Canadian dollar also pressured prices lower.
Canfax’s weighted average price on fed steers was $97.49 per cwt., down $2.22, and heifers were $96.95, down $1.67 from the week before.
Rail bids fell $2 and short fed calf prices were generally down $1.
Read Also
Strong canola exports expected to tighten supply
Canola exports will end up the third strongest in the past 10 years, according to recent Canadian Grain Commission weekly export data.
Significantly lower yield and grade on green softer calves have eliminated live sales for the last two weeks.
Sale volumes at slightly less than 15,000 head were down 26 percent from the week before.
Not all cattle offered were sold.
The cash-to-futures basis strengthened slightly to $6.94 under compared to $7.76 under the week before.
Fed exports to the United States for the week ending April 18 were 10,505, down 17 percent from the week before and 24 percent lower than last year.
So far this year, exports are down 26 percent compared to last year, Canfax said.
Fed cattle supply is still tight. The recent large cash offering is expected to be replaced with seasonally larger grid and contract numbers.
U.S. packer interest could soften. There was talk packers might reduce kill.
With the announcement of the XL plant in Moose Jaw closing until September, the question is where will the remaining cows go. If cows have been age verified, Canfax said one option is to send them to the U.S.
The cow inventory is getting smaller, which should help offset some of the concern.
D1, 2 cows were $43.75-$62.25 and averaged $54.15, down $1.36 from the week before.
Slaughter bulls averaged $65.31, down 67 cents.
Slaughter capacity
Canfax said the closure of the Moose Jaw plant reduced Canada’s federally inspected kill capacity by 5,000 per week to 77,750 head, which is down 21 percent from 2006.
However, weekly slaughter has averaged only 60,000 per week this year and Canfax believes packers will struggle to maintain that pace because of the smaller herd.
Feeder steers steady
The widespread in the quality of feeders going to market has been reflected in prices.
Auction market movement was good with volumes smaller than the before but still larger year to date, Canfax said.
There was some pressure on lighter steers, but overall steer prices were steady.
Most heifer weight classes saw stronger prices, but the 800-900 pound class was slightly lower.
Overall, heifers were 39 cents per cwt. higher.
The strength of the Canadian dollar and a weaker fed market could affect feeder prices this week.
Auction market volumes should dwindle as seeding begins in earnest, Canfax said.
Feeder cattle exports to the U.S. from Western Canada fell to about 5,800 head in the week ending April 18, down from 13,804 the week before. Canfax said this is partly because deliveries were pushed ahead to the previous week to avoid the Easter holiday.
A large portion of Manitoba and Saskatchewan feeders are being exported to the U.S. Some of the cattle could be contracts while others are going to feedlots that are opting to feed in the U.S. instead of Canada.
Among bred cattle, young cows and cow-calf pairs are bringing premiums at auction. Bred heifers are scarce.
There appears to be good demand for bred cattle, but prices were lower for bred cows at $650-$1,080 and heifers at $650-$960. Cow-calf pairs were stronger at $825-$1,370.
Beef values drop
U.S. Choice cutouts fell $3.45 US to $149.97. Select was down $4.11, closing at $146.96.
Beef trim prices were steady to weaker with moderate demand and offerings.
Beef demand will have to improve if U.S. packers are to increase chain speed after the initial H1N1 flu scare, Canfax said.
The Calgary wholesale market for delivery this week was firm at $179 Cdn. Montreal was firm at $187.
Interest in middle cuts is good and ribs and loins should be trending toward seasonal highs.
The byproduct value range was unchanged at $60-$95, Canfax said.
Hog prices hammered
Trade restrictions on pork triggered by the flu scare caused hog prices to plunge last week.
The virus can’t be spread by meat, but that didn’t stop Russia, China and other countries from restricting imports of North American pork.
This is a major blow to hog producers, who hoped seasonally tight supplies would lift prices after a long bout of losses. Packers cut their operating hours to keep up with reduced demand.
After steep losses earlier in the week, futures prices recovered a little ground by the close on the hope that some trade bans might soon be lifted.
Iowa-southern Minnesota cash hogs dropped to $41.50 US May 2 from to $48 April 24.
The U.S. pork carcass cut-out value fell to $55.68 May 1 from $59.28 April 24.
U.S. federal slaughter to May 2 was estimated at 2.05 million, down from 2.14 million the week before and down 4.6 percent from the same week the year before.
Bison stronger
The Canadian Bison Association said Grade A carcasses from youthful bulls in the desirable weight range in Canada were steady at $2.40-$2.75 Cdn hot hanging weight.
Heifers were $2.30-$2.65 per lb.
Cull cow and bull average rose to $1.30 per lb. on tight supply.
Weight, quality, age and delivery location affect final price.
Lambs higher
Ontario Stockyards reported 1,298 sheep and lambs and 142 goats traded April 27.
Light lambs saw higher prices. Heavy lambs fetched premiums. Sheep and goats were steady.
Beaver Hill Auction in Tofield, Alta., reported 504 sheep and lambs and 162 goats traded April 27.
The following are for wool sheep. Lambs lighter than 70 lb. were $159-$190 per cwt., lambs 70 to 85 lb. were $158-$175, 86 to 105 lb. were $158-$175, and those heavier than 105 lb. were $115-$150. Rams were $45-$61 per cwt. Ewe culls were $43-$57 and bred ewes were $62-$93.
The following are for hair sheep. Lambs lighter than 70 lb. were $151-$176 per cwt., lambs 70 to 85 lb. were $142-$160, 86 to 105 lb. were $139-$152 and those heavier than 105 lb. were $139-$147.
Rams were $80-$108 per cwt. Ewe culls were $39-$63.
Doeling kid goats were $140-$170. Billy kids were $165-$205. Nannies were $65-$91 per cwt. and mature billies were $102.50-$151.
