Beef and pork prices lower
Fed cattle futures prices in the United States dropped early in the new year over concern about the large number of finished cattle available for January slaughter.
Canfax says packers have reduced their kills to try to support finished beef prices and that has contributed to the backup in supply. Carcass weights are about 45 pounds heavier than last year at this time.
Cash prices in Alberta Dec. 31 were steers $83.30-$85 and heifers $83.30-$85.35 per hundredweight.
Canfax said producers should expect lower prices in January unless bad weather slows deliveries.
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The Omaha-Calgary fed cattle basis widened to -$8.71.
No feeder cattle trade was recorded due to the holiday. Canfax says feedlots will likely start to see some empty pens, but the losses on finished cattle might keep a lid on heavier feeder prices. Light cattle prices are expected to remain strong.
Hogs moving down
Canadian cash hog prices fell sharply again last week due to lack of packer interest during the holidays.
Saskatchewan’s SPI Marketing notes that U.S. futures prices have not dropped as cash prices have, indicating traders expect the cash market to pick up in the next week now that the holidays are over. Futures are about $25 above cash prices; they are normally only about $5 higher.
Sheep prices from Canada West Foods at Innisfail, Alta., are as follows: Slaughter lambs base railgrade $2.20 per lb. Live lambs 90-110 lb. are $1.045-$1.055 per lb., 110 lb. and heavier are $1-$1.055. Slaughter sheep live weight are 30-41 cents a lb.
