MARKETS
THE WESTERN PRODUCER | WWW.PRODUCER.COM | JANUARY 5, 2012
9
CANFAX REPORT FED CATTLE A BIT STRONGER The Canfax fed steer average for the week ending Dec. 23 was $115.29 per hundredweight, up 54 cents, and heifers were $114.62. Canfax does not publish a report for the last week of the year. Rail steers in Alberta were $192.50$195.50 per cwt. The weekly cash to futures basis widened to -$9.60. The fed offering was slightly less than 18,000 head. Sale volume was 15,432 head, down three percent from the previous week. American buyers showed little interest in green, short-fed Canadian cattle. Western Canadian fed cattle slaughter for the week ending Dec. 17 totalled 30,413 head, up one percent from the previous week. Weekly fed exports to Dec. 10 fell 40 percent to 5,793 head. Exports are down 33 percent for the year. December sales featured a lot of heavy, sorted steers. Their heifer contemporaries will come to market this month, but market-ready supply is expected to remain manageable. Packer inventories have tightened, which should pull contract cattle forward. Supply and demand should be bal-
anced, despite weaker post-holiday demand in January, which should keep prices relatively steady.
COW PRICES RISE With reduced non-fed volumes at commercial auctions, packers were forced to push bids higher. D1, D2 cows averaged $69.83. D3 averaged $60.50. Rail bids were $133-$138 per cwt. delivered. Butcher bulls traded steady following a price surge the previous week. Strong trim demand and a tight non-fed supply in January should support prices.
FEEDER PRICES RISE Feeder volumes eased in the week leading up to Christmas.
End-of-the-year buying and stronger cattle futures helped re-energize the feeder market. The Canfax average steer price rose 50 cents while heifers strengthened 29 cents. Mid-weight steers traded generally $1.50 per cwt. higher while stocker heifers rose moderately. Over the past eight weeks, the 300400 pound steer and heifer price average has fallen $10 per cwt. The few yearling packages on offer have held strong value. The 850 lb. feeder steer basis weakened and remains wider than the four-year historical average of -15.63. Auction volumes totalled 24,224, down 35 percent from the previous week. Weekly feeder exports to Dec. 10 totalled 1,645, up 66 percent from the previous week.
Lift times for fed cattle narrowed, supporting feeder prices. Lower barley futures prices should help feeding margins. Feeder volumes could be sluggish in January.
BRED FEMALE PRICES RALLY A large crowd of spectators and buyers filled commercial auction facilities with numerous reputation herds on offer. Volumes surged as sellers looked to capitalize on improved bred female values. Bred cow prices were steady with sales to $1,875 per head. Bred heifers averaged $1,456 per head. Bottom end heifers are being sorted off and purchased by feedlots. Bred volumes will likely ease into January.
BEEF VALUES UP Blizzards in the southern United States reduced slaughter volumes, while the prospect of tighter beef supply supported cut-out values, which rose $2.75-$3 US in the week ending Dec. 23. Weekly Canadian cut-out values to Dec. 16 rose $1-$1.25 Cdn. Montreal wholesale prices for deliver y in the last week of the year were forecast at $209-$211 per cwt. This cattle market information is selected from the weekly report from Canfax, a division of the Canadian Cattlemen’s Association. More market information, analysis and statistics are available by becoming a Canfax subscriber by calling 403275-5110 or at www.canfax.ca.
OTHER CANOLA IS YELLOW…
OURS IS GOLD
access=subscriber section=markets,none,none
6060 RR 6040 RR
WP LIVESTOCK REPORT HOGS LOWER U.S. packers showed good demand for hogs with expectations for January supermarket pork features clearing out the backlog that built up over the holidays. Packers had good operating margins. A mild winter is leading to heavier than usual carcass weights. Iowa-southern Minnesota live hogs traded at $59.25 US per hundredweight Dec. 30, down from $61.50 Dec. 15. U.S. pork carcass cut-out value closed at $85.16 Dec. 30, down from $90.84 per cwt. Dec 16. The U.S. federal weekly slaughter estimate for the holiday week was 1.97 million, down from 2.16 million the previous week. U.S. slaughter was up 0.6 percent on the year.
6060 RR SETS THE NEW GOLD STANDARD BrettYoung’s highest yielding hybrid, 6060 RR, out-yielded commercial checks by 2.6 bu/ac (106%). Providing impressive yields, 6060 RR is a leader in its class. For proven consistent performance with yields equal to the commercial checks and better standability and harvestability, turn to 6040 RR. 6060 RR and 6040 RR come complete with the unparalleled weed control offered by the Genuity Roundup Ready system. In the end, it all comes down to performance, and BrettYoung brings a new standard of excellence to the field.
Packers had good operating margins.
brettyoung.ca 800-665-5015
BISON MOSTLY STEADY
SHEEP PRICES RISE Ontario Stockyards Inc. reported 622 sheep and lambs and 25 goats traded Dec. 27. New crop lambs traded at lower prices while all other types sold steady. Sheep were $10-$15 cwt. higher. Goats sold steady. access=subscriber section=markets,none,none
106%1
6060 RR
The Canadian Bison Association said grade A bulls in the desirable weight range were $3.75-$4 per pound hot hanging weight in the week ending Dec. 16. Grade A heifers fell on the low end of the range to $3.60-$4. Animals older than 30 months and those outside the desirable weight range may be discounted. Slaughter cows and bulls averaged $2.50-$2.70.
6040 RR
100%
Check
100% 0
30
60
90
120
Yield 1
“In any field, a gold medal performance is a result of preparation, hard work and unwavering support.” JON MONTGOMERY 2010 Olympic Gold Medalist – Skeleton 2008 World Championship Silver Medalist BrettYoung is a trademark of BrettYoung Seeds Limited. Genuity® and Roundup Ready® are registered trademarks and used under license from Monsanto Company. 11034 10.11
Check is an average of 45H28 and 7265 over 18 replicated field scale grower trials (2010).