Fed cattle steady
Despite the appreciating Canadian dollar, fed cattle prices were mostly steady with the previous week.
The Canfax weighted average price on steers was $89.53 per hundredweight, up 26 cents from the week before and heifers were five cents lower to average $89.20.
Canfax said live and dressed prices realigned relative to yield, which may indicate that quality, yield and grade are improving as feedlots move from very current to current in their marketing.
Sale volume increased by three percent to about 27,000 head.
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The cash to futures basis weakened to $1.23 under compared to $4.82 under the previous week.
Exports to the U.S. for the week ending May 16 rose 16 percent to 7,041 head. That was 39 percent lower than last year.
The strong interest in commodities is supporting the Canadian dollar, making it a negative factor in Canadian fed and feeder pricing.
Dry pasture conditions across the west-central Prairies could cause more cow cull, which would compete with feeder cattle.
Fed prices are expected to trend lower in June, Canfax said.
Slaughter cows weaker
Auction markets report large volumes of cows and waning interest as non-fed slaughter dropped during the week ending May 23, Canfax said.
Butcher bulls were also pressured lower. Dry pastures will make more cows and bulls available for slaughter. The question is how many do packers need?
Weak beef demand
Beef movement was weak over the U.S. Memorial Day weekend.
Other cheaper meats were featured at grocery stores and beef has struggled to move, Canfax said.
The Choice cutout fell $1.13 US to close at $145.47 and Select dropped $2.34 to close at $139.32.
Warmer weather is needed to spur beef demand for barbecues.
The Calgary wholesale market for delivery this week dropped $1 Cdn to $170 while Montreal was down $4 to $179.
Dryness affects market
Auction markets reported good feedlot interest and solid demand for grass cattle, with larger volumes reported.
If pasture conditions don’t improve, many cattle bought to feed on grass may go back to the auction mart.
Tighter supplies in the U.S. are expected in the fourth quarter. American feedlots are likely expecting strong demand for Canadian cattle to fill the supply and are continuing to place cattle for fall delivery, Canfax said.
Prices were lower in all weight classes last week due in part to the strong loonie. Heifer calves reported the biggest decline, almost $4 per cwt. lower.
Overall, steer prices fell $1.14 per cwt. and heifers were $1.67 lower.
Feeder cattle exports to the U.S. for the week ending May 16 totalled 3,896 head, down from 4,295 head the previous week, Canfax said.
The high Canadian dollar will discourage exports.
Bred cattle trade was light. Cows averaged $951.25, up $82.50 per head while bred heifers averaged $827.50, down $10. Cow-calf pair offerings were smaller and prices averaged $1,058, down $46.
Hog demand low
Weak pork demand kept downward pressure on hog prices through most of the week. The strong Canadian dollar made the situation worse north of the border.
Pork exports are slow in the wake of the H1N1 flu scare.
Mexico said it was increasing inspections of imported meat, which might slow trade. Mexico is a major buyer of American and Canadian pork.
Iowa-southern Minnesota cash hogs fell to $41-$42 US per cwt. early in the week but climbed to $44 May 29, steady with May 22, but down from $48-$49 May 15.
The U.S. pork carcass cutout value fell to $58.89 May 29 from $60.24 May 22.
U.S. federal slaughter in the holiday-shortened week to May 30 was estimated at 1.8 million, down from 2.06 million the week before, and down 1.2 percent from the same week the previous year.
Bison steady
The Canadian Bison Association said supply of A1 slaughter animals is increasing seasonally.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were at $2.40-$2.70 Cdn 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.
Agriculture Canada reported bison slaughter in Canada in April totalled 1,257, down from 1,731 in the same month a year ago. Slaughter this year totalled 7,259, down three percent from the previous year.
Exports of slaughter males to the U.S. total 2,193 this year, down 20 percent. Female exports were 3,157, up seven percent. Feeder male exports totalled 1,312, down 25 percent and feeder females were 1,359, down 20 percent.
Sheep prices fall
Beaver Hill Auction in Tofield, Alta., reported 570 sheep and lambs and 160 goats were traded May 25. Sheep and goats fell $20 per cwt. The best demand was for well fed sheep and goats in all weight classes. There was little demand for feeder sheep and goats.
Lambs lighter than 70 lb. were $104-$167 per cwt. Lambs 75 to 85 lb. were $140-$171, 86 to 105 lb. were $139-$167, and those heavier than 105 lb. were $147-$159. Rams were $35-$68 per cwt. Ewe culls were $30-$55. Families were $100-$250 per family.
Good kid goats were $160-$217.50. Nannies were $60-$91 per cwt. and mature billies were $102.50-$151.50.
Ontario Stockyards reported 1,525 sheep and lambs and 100 goats traded May 25. Well-fed lambs were barely steady. Under finished and plain types sold under pressure. Sheep and goats were firm.
