Fed prices pressed lower
In light trade, fed steer averages dropped $5 per hundredweight and heifers fell $5.75, Canfax said.
Prices fell in reaction to slow beef sales and lower wholesale prices in Canada and the United States and the rapidly rising Canadian dollar, which is reducing the returns of Canadian packers exporting meat to the U.S.
Canfax members reported about 21,000 head sold, 6,500 fewer than the week before.
Packers had good inventory so most cash trade took place midweek.
Some producers chose not to sell because of the low prices.
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The week’s set-aside saw 209 registered bidders, with 34 bidders participating. The weighted average accepted bid was $1.45.
Alberta prices in limited trade were steers $75 per cwt. live, $125.50-$128 flat rail and heifers $128 flat rail.
Canfax said the strong loonie and weaker wholesale beef prices will keep downward pressure on prices, but that might prompt producers to place more cattle in the set-aside program, leading to decreased supplies that will help support prices.
Canadian cutouts fell $2.25-$2.75 per cwt. two weeks ago, with trimmings trading steady. Product appears to be backing up in the system on both sides of the border, Canfax said.
Packers report movement of middle meat cuts is sluggish. The Calgary wholesale market for this week is down by $2-$3 to $135-$142 per cwt.
Lower rendering values and a decrease in hide prices have pushed drop credits down $1-$5.
U.S. cutouts fell $10 US on Choice and $8 on Select, which means all of the U.S. beef price run-up in October has been given back and prices are now 16-23 percent lower than last year. Analysts expect little improvement until after American Thanksgiving.
Feeder prices mixed
Alberta auction markets slipped to slightly fewer than 95,000 head trading, down three percent from the week before, but up 18 percent from last year, Canfax said.
Averages for the week were mixed, but stronger prices were evident later in the week. This was mostly due to optimism regarding the border after learning George Bush was re-elected as U.S. president, raising hope that the border will open sooner rather than later. Also, out-of-province buyers were noted.
Steers 300-500 lb. fell $1-$1.50 Cdn, while 500-600 lb. held steady. Steers 600-900 lb. and heavier traded 50 cents-$1.25 lower.
Heifers 300-400 lb. were $1.50 lower and 400-500 lb. were down 25-75 cents. Heifers 500-700 lb. rose $1-$1.25, while 800-900 lb. and heavier were $1-$2 lower. D1, 2 cows lost $1.50, while butcher bulls traded slightly lower at $15.15 per cwt, said Canfax.
As of Nov. 8 there was still no solid news on when the border would reopen. The increasing loonie, coupled with a fed price that was under significant pressure, could cause buyers to lower bids for feeders.
Stock bred cows were $300-$900, while bred heifers were $300-$600 on medium quality and $600-$1,260 on good quality.
Cow-calf pairs in northern and central Alberta were $420-$750.
Cash hogs soar
U.S. cash hog prices soared about 10 percent last week and Canadian prices also rose, despite the sharp rise in the loonie.
Manitoba’s large slaughter plants killed a record 91,035 hogs during the week, up about 2.3 percent over last year, said Manitoba Agriculture.
The weekly average Iowa-Minnesota daily direct hog price (Thursday to Thursday, 51-52 percent lean carcass converted to live weight) increased to $59.30 US per cwt. on Nov. 4.
Ron Plain of the University of Missouri said packers appeared to be operating in the red at week’s end and would likely try to reduce slaughter to improve margins this week.
The U.S. weekly national direct delivered early-weaned pig (10 lb.) weighted average price rose by 69 cents to $35.67 per pig. The weighted average price for 50 lb. feeder pigs fell by $4.14 to $56.43 per pig.
In Manitoba the spot price for five kilogram weanling pigs was $44.12-$51.48 Cdn per pig for the week ending Oct. 29.
The spot price for 23 kilogram weanling pigs was $60-$79.67 per pig for the week ending Oct. 29. The top bids for the spot prices were higher than the top bids for contract prices for the third week in a row.
Light lambs rise
Ontario Stockyards Inc. reported 2,247 sheep and lambs and 221 goats traded. Sheep and goats sold at steady prices. Light lamb prices rose $10 cwt., while all others traded steady.
