Loonie hurt fed prices
The fed steer average price last week was $89.75 per hundredweight, down $1.73 from the week before and heifers were $88.76, down $2.29, Canfax said, due largely to the strong Canadian dollar.
Green fed calves routinely traded $2-$3 lower than yearlings.
Sales volume rose 33 percent to about 19,000 head, but not all the show list sold.
The cash-to-futures basis weakened to $7.09 under compared to $4.80 under the week before.
Fed exports to the U.S. for the week ending May 2 were down three percent at 10,712 head. That was two percent higher than last year.
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It is doubtful fed prices will recover much during May, Canfax said.
The recent strength in commodities and equity markets will likely support the loonie at high levels, giving little opportunity for fed cattle prices to rise over the next couple of weeks.
Cool spring weather is hindering domestic beef demand. Canadian packers suffering negative margins might slow production to offset the smaller cash cattle offering.
U.S. packer margins are in the black and with a widening basis, American buyers may soon lend support to Canadian fed prices, said Canfax.
In the non-fed market, after a few weeks of softer prices, strong trim product demand and fewer butcher cows have helped to steady prices. Butcher bull trade was lower.
D1, 2 cows in the West were $46.75-$60, for an average of $53.88.
Loonie pressures beef
U.S. Choice cutouts rose 80 cents US to $146.04 May 14 and Select climbed 32 cents to $142.92, Canfax said.
Canadian wholesale prices are pressured by the strong loonie. The Calgary wholesale market for delivery this week was steady at $175 Cdn. Montreal was down $4 to $187.
Byproduct values were $104.
Feeders mostly lower
It is dry and cold in large parts of the Prairies, and feeders will still go to market if the grass doesn’t start to grow.
With demand moderate to good, producers are selling. Prices were lower on most classes except steer calves 300-600 pounds, Canfax said.
Auction markets report that top quality grass cattle are in demand.
Feeder cattle exports slowed since April 18, likely due to the high Canadian dollar. Auction market movement was decent with volumes smaller than the previous week but still larger year to date, Canfax said.
Prices for steers were 33 cents per cwt. lower and heifers were 87 cents lower than the previous week.
The strong loonie will likely continue to restrict exports.
In the bred market, most offerings were cow-calf pairs with few bred cows and heifers. Some auction markets reported sales of cow-calf pairs up to $1,600. With more old cows at market, demand for quality young cows to replace them has helped support the higher prices.
Cattle on feed
The total number of cattle on feed in Alberta and Saskatchewan was at 934,721 head on May 1, up two percent from a year ago, Canfax said.
Placements in April were 130,647, down 22 percent from last year. April marketings were 124,620, down 19 percent from last year.
Many of the cattle sold in April are expected to go to grass or be backgrounded, Canfax said. The large cow herd reduction has tightened the calf supply. Cows and bulls made up a good percentage of auction market volumes.
Heifers account for a smaller percentage of placements. With the sell off of older cows, replacement heifers are going back into the herd.
Hog, pork trade improves
Fears about the H1N1 flu virus subsided and pork trade began to recover.
The seasonally tight supply of market-ready hogs, which should have been supporting prices if not for the flu panic, re-asserted its effect on prices.
Pork prices did not keep pace with rising hog prices and packer margins were hurt. This might weaken hog bids this week.
Iowa-southern Minnesota cash hogs jumped to $48-$49 US per cwt. May 15, up from $42 May 8.
That was equal to prices before H1N1 disrupted the market.
The U.S. pork carcass cut-out value rose to $61.85 May 15, up from $59.30 May 8.
U.S. federal slaughter to May 16 was estimated at 2.08 million, up from 2.01 million the week before, and up 0.7 percent from the same week the year before.
Bison heifers rise
The Canadian Bison Association said heifer prices rose. Slaughter cow and bull prices gained 10 cents over two weeks.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were at $2.40-$2.70 hot hanging weight. Heifers were $2.40-$2.65 per lb.
Cull cow and bull average was $1.30 per lb. on tight supply.
Weight, quality, age and delivery location affected final price.
Kid goats higher
Beaver Hill Auction in Tofield, Alta., reported 494 sheep and lambs and 128 goats traded May 11. Sheep and goats saw strong prices. Good kid goats 50-80 lb. broke $2 per lb.
Lambs lighter than 70 lb. were $151-$194 per cwt. Lambs 75 to 85 lb. were $142-$185, 86 to 105 lb. were $139-$172, and those heavier than 105 lb. were $139-$160. Rams were $55-$180 per cwt. Ewe culls were $47-$67 and replacement ewes were $84-$120.
Good kid goats were $180-$240. Nannies were $60-$91 per cwt. and mature billies were $102.50-$187.50.
Ontario Stockyards reported 1,033 sheep and lambs and 92 goats traded May 11.
All classes of lambs and goats were steady.
