Fed cattle prices dropped 50 cents-$1.25 per hundredweight in sluggish trade last week.
Canfax said quality is mixed and heavy cattle are getting the lowest prices.
On Feb. 12 steers in Alberta brought $80.25-$83.75 per cwt. and heifers were $80.05-$83.25.
So far this year, the number of cattle marketed is up two percent, but because of heavier weights, beef production is up six percent.
In the coming weeks, the number of cattle ready for market will decrease in Canada, and the short term outlook is for prices to rise $2 per cwt.
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But upside potential depends on meat prices.
Canfax said wholesale beef prices were lower last week, with Montreal down by $4 to $170 per cwt. Beef movement and packer profit margins are a concern as cash cattle prices rise.
Prices for fed cows rose $2-$3 per cwt. and might rise another $1 this week.
Feeder cattle prices were $1-$3 per cwt. lower on heavier classes and steady on lighter animals although late in the week heavy prices rose. Strong U.S. interest and improved local feedlot demand was the turning point, said Canfax.
Given the expectation of higher fed cattle prices, feeders should regain some ground this week and grass cattle will remain strong.
In stocker markets most bred cows sold at $800-$1,000. Most bred heifers sold for $850-$950 and there were a few cow-calf pairs at $900-$1,170.
Hogs
U.S. hog prices in Omaha fell from $37-38 (U.S.) per cwt. (live) on Feb. 9 to $34.50 Feb. 13.
Canadian hog prices also fell.
SPI Marketing in Saskatchewan says cash prices fell despite slaughter levels that were lower than the previous week.
The reduced slaughter seems to run contrary to U.S. cutout values that should mean better profitability for packers, SPI said.
Manitoba Pork said producers should avoid locking in prices during this downturn and wait to see if new export business gives a short term boost to the market.
Sheep
The United States Department of Agriculture annual total sheep and lamb inventory released Jan. 30 showed the size of the U.S. industry continued to decline in 1997.
As of Jan. 1, 1998, the number of sheep and lambs in the U.S. totaled 7.6 million head, down four percent from 1997 and 10 percent below 1996.
That was the slowest year-to-year rate of decline on a percentage basis since 1992 when the population declined 3.4 percent.
