Cattle markets lower
SASKATOON (Staff) – Cattle markets were buffeted on all fronts last week.
The slaughter cow market lost another $1 per hundredweight early in the week, but traded steady for the remainder of the week. Canfax said the recent drop in prices is due to ample North American cow supplies for the first quarter of 1995 (including more Mexican cow imports into the U.S.), cheap chucks and a wider, favorable spread between U.S. Choice and Select grades.
New Zealand and Australian beef imports to Canada are down nearly 60 percent compared to 1994, Canfax said. Better summer beef demand should help steady cow prices, it added.
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D1 and D2 cows traded between $42-$53 per cwt., with top sales to $55, while railgrade cows were priced between $92 and $98 per cwt.
On the slaughter cattle side, prices opened the week with a $3.50 drop and stayed down.
Volume was slimmer compared to the big run during the first week of May, but still OK for this time of year, Canfax said. Despite optimal grades in feedlots, average carcass weights are still about 40 pounds heavier than they were at the same time in 1994. Canfax said weights have probably put in their seasonal low.
Trade on May 11 saw steer prices between $76-$79.75, while heifers were priced between $77-$77.50.
Feeder cattle experienced lower prices in the fed market, with heavier feeders feeling the downturn worse than lighter feeders. Canfax reports a mixed quality offering, especially in southern Alberta where buyers were cautious.
