Western Producer Livestock Report

Packer demand limited

A few more fed cattle were sold last week, but with Canadian kill falling below 30,000 head, packer demand is limited.

More than 9,000 head sold, more than double the previous week, Canfax said.

Alberta prices started out in the mid- to upper-$70s per hundredweight, with the odd sale reaching $80 and some bids as low as the $60s.

Prices by the end of the week were mostly in the mid-$70s.

The average was down $4.75 per cwt. on steers and down $3.75 on heifers.

Read Also

USDA’s August corn yield estimates are bearish

The yield estimates for wheat and soybeans were neutral to bullish, but these were largely a sideshow when compared with corn.

With the Moose Jaw XL Beef plant closed, a few Saskatchewan cattle went to Ontario

Canfax expected little change until the border reopens.

Each week cattle weights creep higher and more weight discounts will be applicable in the weeks ahead Canfax said.

Feeder sales pick up

Feeder sale volumes picked up slightly.

Fewer than 6,800 head were sold through Alberta’s auction markets, more than double the previous week, but down 68 percent from last year.

There were still not enough cattle in each weight class to establish real trends.

The sales that did occur featured feeder steers under 700 lb., $1-$6.50 per cwt. lower, feeders 700-900 lb. were $1.50 higher and heavier steers were under slight pressure at $2 lower.

Heifer calves less than 700 lb. were $2-$5 lower and calves heavier than 700 lb. were up $1-$4.

Stronger prices for replacement females were reported.

Few cows have been slaughtered since May 20, leading to few bids.

Many cull cows destined for slaughter have now been put back on grass, but there are still grain-fed cows available for slaughter.

D1, 2 cows were reported at $30-$45 per cwt., with an average at $38.17, down more than $4 from the previous week.

Canfax said feeder sales volumes will be light in coming weeks. Fortunately pasture conditions are good, so most calves are already out on grass.

Some background lots with heavier feeders are now left with the decision to either sell their heavier than 800 lb. feeders at lower prices or continue to feed them with the intent to finish in late summer or early fall.

Bred sales still shut down

There were no reported bred stock trades.

Cow-calf pairs traded from $900-$1,625 with most at $1,150-$1,500.

Business in the beef sector remains slow with the reduced kill basically filling domestic needs.

Even with the kill rate reduced to a rate designed to fill the domestic market only, supplies of end meats and trimmings are piling up. Demand for middle meats is good and packers are importing some of these cuts to fill the need.

Packer kills are being dictated by what they can move on the entire carcass.

The red hot U.S. beef market cooled slightly last week, with the cut out falling by $5 US per cwt. to $144 on Choice Light. This is still 27 percent higher than a year ago.

There is still a $16 spread between choice and select, Canfax said.

Hog prices escape dollar

Although it soared June 13, the Canadian dollar spent most of the week below 74 US cents and had little negative impact on Canadian hog prices.

The big influence was the stronger American market that dragged Canadian hog prices higher.

U.S. retailer demand for pork reached a peak at the beginning of the week, when the pork cut-out value rose to $70.56 per cwt.

Although wholesale prices for all pork cuts, except picnics and hams, at the end of the week were still higher than the previous week, the cut-out value dropped by almost $2 from Monday to Thursday.

Packers increased their kills, but had to pay more for hogs, reducing their margins.

The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) rose from $50.49 per cwt. on June 9 to $51.33 on June 12.

U.S. hog prices were up by five to six percent from the previous week.