Fed cattle weaken
Fed steers and heifers were $1.50 per hundredweight lower last week, said Canfax.
Fed cattle prices weakened in Canada midweek and as a result, almost 9,000 more cattle were exported to the United States.
Confirmation of Canada’s eighth BSE case did not affect the market.
By the end of the week, the Canadian dollar had again topped 90 cents US, its highest level since early July. This shifted the Canada-U.S. basis in favour of the U.S., encouraging exports.
Alberta prices Aug. 25 saw steers at $83.40 per hundredweight, flat rail $140.55 and heifers $85.35.
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Canfax expects the total number of market-ready cattle will not climb in the next few weeks, but more will be exported instead of being slaughtered at home.
Beef down
The Canadian kill for the week ending Aug. 19 was 67,715 head, said Canfax.
The Calgary wholesale market for delivery last week was steady at $144-$146 per cwt.
U.S. cutouts could not hold onto recent gains and Choice fell $4.68 per cwt. from the week before. Select was down $3.94 per cwt.
The U.S. Choice-Select spread has narrowed a bit to $10.29 per cwt.
Beef movement picked up last week with 26 percent more loads moving compared to the week before.
Feeder volume rises
The feeder market is picking up steam with larger auction market volumes and solid prices, said Canfax.
TEAM, Satellite, Nilsson Bros. and DLMS internet sales contributed 11,894 head to the volume last week.
Alberta auction market volume was 18 percent higher than the week before, but 19 percent below last year, said Canfax.
Feeder cattle exports for the week ending Aug. 19 were 3,213 head, a substantial increase from the previous week.
Light steers 300-500 lb. were up $4.50-$6 per cwt. while light heifers 300-500 lb. rose $1-$3.50.
Steers 500- 700 lb. were down $1.50 and heifers 500-700 lb. were up $1. Heavy steers and heifers were steady to $1 higher.
The cow market was strong with D1, 2 cows up $1 and butcher bulls up 50 cents.
Canfax said rising volumes might cause quality to become a pricing
issue.
Quality cattle are expected to bring a premium while poor, thin types will probably be discounted.
With unfavourable grass conditions in parts of Alberta, Canfax
expects to see volumes pick up in the Peace country and possibly the southeast.
There was a thin test in stock cow trade and some pairs are being split up at auction.
Bred cows on medium quality were $450-$810 and plain bred heifers were $450-$750. Plain cow-calf pairs were $700-$1,250.
Hogs climb again
American hog prices rose last week, but analysts thought they would slip this week because the demand for Labour Day pork specials had been filled.
The strength in the market, partly due to slow weight gain during the heat of summer, had pushed packer margins into the red.
The Iowa-southern Minnesota live cash price for hogs delivered to plants climbed to $55 US per cwt. Aug. 25, up from $53-$54 Aug 18.
The composite pork carcass cutout value rose to $76.81 Aug. 25, up from $75.68 Aug. 18.
