Cattle prices steady
Fed cattle prices were unchanged last week and the volume traded was
smaller at 12,000 head.
Canfax said it appeared that sellers were still willing to wait.
A few more calves made their way into the slaughter mix.
Alberta prices Feb. 21 were steers $105-$107.75 per hundredweight, flat
rail $179-$180.30 and heifers $103.75-$107.10, flat rail $178-$179.65.
The wholesale beef business is still dragging its feet with no
improvement yet, Canfax said. The spring spark is still around the
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Packers continue to reduce weekly kill schedules in hopes of
maintaining beef prices and reducing live inventory requirements.
Wholesale prices are virtually unchanged with Montreal at $180-$181 per
cwt. The Calgary market is steady with handyweights at $175-$188 per
cwt. and heavies at $170-$174.
No change was reported in byproduct values.
Looking ahead, Canfax said it appears sellers are willing to drag out
sales, hoping that the futures market may strengthen.
But the delay adds weight to the cattle in the feedlot, offsetting the
fact there are fewer being fed.
Also, packers have become adept at matching their kill requirements to
how the beef is moving and what’s available to slaughter.
Canfax said delaying sales will only delay the fed cattle price
recovery.
Feeder cattle prices were under pressure with most classes steady to
$1.75 per cwt. lower.
Steers were mostly $1-$2 lower while heifers were mostly steady to $2
lower. Lighter calves were the only animals fetching a premium.
Buyers are becoming more selective in matching quality and type of
cattle to the needs of their feedlot.
Most markets reported large numbers of cattle selling to American
buyers, as well as local buyers.
So far in 2002, Canada has exported 65,000 head of feeders to the U.S,
slightly more than three times as many as last year. Volumes sold were
48,000 head, 19 percent smaller than last week and six percent smaller
than the same week last year.
Slaughter cows were also under pressure with averages down $1.25 per
cwt.
Good grain-fed cows were selling from $60-$67 with some extreme reports
to $69.50.
Cows with fewer days on feed still are selling from $57-$62.
Canfax said some of the recent pressure on feeder futures prices can be
attributed to the Johnson amendment of the U.S. Senate’s Farm Bill,
referring to packer ownership. If the bill passes and packer ownership
is banned, the short-term effects on feeder trade would be negative due
to lost competition and reduced packer profits. The effect would also
be felt in Canada.
In stock cow trade, bred cows sold at $1,100- $1,400, with some sales
as high as $1,550. Older or common types traded as low as $850.
The bulk of heifers traded at $1,100-$1,450 with some sales to $1,550.
The lower end of the heifers traded at $850. Cow-calf pairs traded at
$1,100-$1,400.
The pork cutout value in the United States decreased again due to lower
wholesale prices for loins, butts and hams, but American packer margins
are still positive.
Manitoba Agriculture said a tighter hog supply meant packers had to
raise their bids for hogs early in the week.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent
lean, live equivalent) rose from $40.53 US per cwt. on Feb. 18 to
$41.08 midweek, but declined slightly by the close.
Prices in Canada fell slightly over the week.
