Top cattle prices rise
Fed cattle rose $2.50 per hundredweight on average, with the top end
about $3 higher than last week, said Canfax.
The weekly average surpassed the $100 mark for the first time since
early April. Prices peaked midweek.
The higher prices attracted cattle and close to 20,000 head sold,
although numbers were down 12 percent from the previous week’s big
offering.
Alberta prices Oct. 24 were steers $97.20-$101.15 per cwt., flat rail
$163.65-$167.65 and heifers $97-$100.25, flat rail $167-$168.
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With the onset of fall and higher cash cattle pricing ahead, most
expect wholesale beef pricing to follow suit.
Beef movement is considered adequate, Canfax said.
The Montreal wholesale price is up by $2-$4 per cwt. in a range of
$163-$164.
The Calgary market is up by $1-$5 with more strength on the
handyweights, with most in the range of $152-$156 and tops to $162.
Cutout values were up 50 cents to $1.50 with the most strength on the
AAAs.
Western Canadian markets are narrowing the basis with the United
States, especially to the U.S. cash market.
U.S. fed cattle prices last week were $67, meaning a basis of about
$3.75 under, while the top end sales are only $2.50 under the U.S.
price.
That is a fast move, considering that only three weeks ago the basis
was $8 under the cash, Canfax said. More strength in the U.S. cash
market is needed to help solidify the situation here.
Feeder buyers selective
Feeder auction reports were mixed.
Steers were mostly 50 cents to $1.25 per cwt. lower on calves under 700
pounds and steady to $1 higher on heavier cattle.
Heifers were 75 cents higher on 400-500 lb. calves, with all other
classes steady to 50 cents lower.
Volumes were up 24 percent to 97,300 head from the previous week but
still 14 percent smaller than the same week last year.
Buyers were increasingly selective. Competition seemed fierce for top
quality feeders at most markets while common types were under pressure
in the same sales.
Slaughter cow prices rose $1 on average.
Canfax said increased fed prices generally support feeder prices.
It is expected that trade will see good volumes and sales will maintain
similar buying patterns, with wider ranges due to the variety of calves
offered.
So far this fall prices have been mostly steady and the next few weeks
should see more of the same.
In stock cow trade, bred cow prices were softer on the lower end of the
range with some selling as low as $550. The bulk of the trade on cows
was $700-$1,050.
Bred heifers traded at $600-$1,050 with the majority at $750-$1,050.
Hog prices lower
Hog markets were lower last week in Canada and the U.S.
Large supplies of slaughter hogs, lack of new demand, and an abundance
of pork and other red meat in storage were factors, said Manitoba
Agriculture.
The U.S. Department of Agriculture’s cold storage report released
Oct.18 showed supplies of frozen pork were three percent above last
month and 30 percent above last year.
The supply of red meat in freezers was five percent above August and 28
percent higher than September 2001.
U.S. packers began the week with lower bids. There was a large delivery
of hogs on Oct. 22 that prompted the forecast of a Saturday kill.
The next four to six weeks is the time when hog prices are seasonally
the lowest due to large supplies.
However, some analysts suggest the low prices seen in September were
the bottom for the year.
The Iowa-Minnesota daily direct hog price (mean, 51-52 percent lean,
live equivalent) decreased from $40.89 US per cwt. on Oct. 21 to $36.99
on Oct. 24. This week’s average hog price declined about 10 percent.
