Tight supplies raise prices
Fed cattle prices gained $4 per hundredweight on average as packers showed keen interest in owning inventory, especially later in the week.
Only 14,000 head traded through Canfax members.
Producers reported more timely “lift” dates for cattle that have been sold, indicating the packer-owned supply is smaller.
Alberta prices Feb. 19 were steers $80.50-$83.15 per cwt., flat rail $137-$139.35 and heifers $81-$82.60, flat rail $139.
Sellers will use the tighter supplies to pressure prices higher, said Canfax.
The same situation was playing out in the United States last week where cattle feeders slowed sales, trying to pressure packer bids up.
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Demand for beef on both sides of the border continues to be strong, meaning cut-out value should also strengthen heading into March.
The Canadian cutout fell by $3-$4.50 per cwt., with all cuts down. The U.S. cutout turned the trend around by gaining $2.80-$3.80 US. More strength was noted on the Select cutout, thereby narrowing the Choice-Select spread.
Business in both countries is considered moderate given the closed borders. Wholesale beef prices this week are up $1 in Montreal at $140-$142 per cwt., while Calgary is $2 higher at $134-$135.
Feeders hold up
Feeder cattle markets were able to stop the price slide of the past few weeks. Weekly averages were $2-$5 per cwt. higher. Some sales toward the end of the week were as much as $8-$10 higher, said Canfax.
Most of the strength was in feeders 700 lb. and heavier.
Volumes were still small with 38 percent fewer cattle trading than the week before and 53 percent smaller than the same week a year ago, at just under 15,000 head.
Prices should hold or strengthen, given the smaller numbers of feeders on offer and the stronger fed cattle market.
Bred cows ranged from $300-$500 on plain types and $500-$775 on the better end. Good bred heifers were $500-$790 with the bottom end at $300-$500. Cow-calf pairs on a limited test brought $510-$880.
The U.S. Feb. 1 cattle on feed report came in close to estimates. Placements were down 16 percent from 2003 and 20 percent below 2002. It was thought to be an all-time low for January. Several factors are contributing to the decline in placements, such as U.S. beef export stoppage, no Canadian feeder cattle imports and a smaller U.S. calf crop.
Marketings were down 10 percent from 2003 and 14 percent below 2002.
Total U.S. cattle on feed was set at 11.1 million head, an increase of four percent.
Pork prices dip
Lower wholesale prices for pork loins, ribs and bellies at the end of the week lowered the U.S. pork cut-out value slightly.
Prices for hams increased, which kept carcass prices relatively steady compared to the start of the week.
With good supplies of hogs still available for slaughter, packers were not forced to increase hog prices. Prices fell all week. The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) slipped from $47.34 US per cwt. on Feb. 16 to $46.94 on Feb. 19. The decline was less than one percent.
The impact of the lower-valued Canadian dollar offset the marginally lower U.S. hog market.
Lambs cheaper
At Ontario Stockyards Inc. Feb. 16, 2,735 sheep and lambs and 263 goats sold. All classes of lambs sold $15-$20 cwt. lower. Sheep and goats sold barely steady.
Prices per cwt. for new-crop lambs were $120-$165, highs to $187.50. Lambs 65 to 80 lb. were $80-$139, to $170; 80 to 95 lb. $70-$105, to $131; over 95 lb. $70-$105, to $120; feeder lambs $110-$140 while lambs, over 120 lb. were $44-$59.
Sheep were $42-$54, to $67; plainer types, all weights, $42-$58; rams $55-$68.
