Fed cattle steady
Fed cattle prices were little changed last week, Canfax said.
The strength shown in the U.S. market the week before quickly dissipated as rising feed costs and weaker beef prices pressured the market lower.
Volume was about 20,000 head, up one percent from the week before.
Fed cattle exports were about the same as the week before.
Carcass weights are slowly dropping from recent highs, Canfax said. The trend should continue, considering the rising cost of feed.
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Alberta prices on Nov. 2 were steers $84.75-$85.50 per hundredweight, flat rail $141-$144.30 and heifers $84.90-$87, flat rail $144.30.
The Canada-U.S. basis widened last week, a surprise given tight market-ready supplies in Canada and a weaker Canadian dollar.
Packers are making less from killing fed cattle so they are processing more cows.
Beef lackluster
The cutout appears to be losing steam, although trends are traditionally higher in November and December, Canfax said.
Choice gained 50 cents US last week in the United States, but Select lost $1.50, widening the spread to $12.50. Beef movement was down four percent.
Canadian cutouts saw the AAA-AA spread narrow considerably with the AAA down $2.50 Cdn and the AA up $1.50, leaving the spread at a little less than $3.
Given higher feed costs, the industry may reduce AAA and Choice grading cattle if days on feed are shortened dramatically heading into 2007.
Calgary wholesale prices were steady for delivery this week, with steers at $143-$145.
Volume, price down
Auction market volumes and prices dropped last week, Canfax said.
Lower feeder prices have producers thinking twice about selling, said Canfax. Also, feedlots are wondering about how much they can spend on cattle as barley prices climb. Top end Lethbridge barley was $3.37 per bushel, up from $3.26 the week before and $2.44 last year. The futures market suggests barley will reach $3.92-$4.03 per bu. by spring.
Volume at 76,906 head was down 12 percent from the week before and 21 percent from last year.
Volumes may continue sluggish in the future because some producers won’t sell at today’s prices. Most ranches have good forage so some may hold calves into the new year.
Demand last week was thin at times and second cut calves saw the most pressure. In the 300-500 pound class, steers were down $3-$3.50, and heifers fell $2-$3.50.
Steers 500-800 lb. dropped $3.25-$3.50 and heifers were off $4-$5.
Steers 800-900 lb. and heavier were down $2.50-$2.75 and heifers were down $2-$3.50.
D1, 2 cows were $1 lower and butcher bulls fell $2.25.
Quality stock bred cows and heifers are heading to auction. Good bred cows were mostly $850-$1,000, with tops to $1,320 and plain types $450-$800. Bred heifers were mainly $800-$1,000 tops to $1,250 and plain types $450-$750.
Hog prices edge higher
There was speculation that pork plants might reduce slaughter to pressure pork prices higher this week. Retail markets are starting to feel the effect of the coming American Thanksgiving holiday and the increase in turkey buying.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $48 US per cwt. on Nov. 3, up slightly from $47 Oct. 27.
The U.S. composite pork carcass cut-out value was $67.50 on Nov. 3, slightly up from $67.36 Oct. 27.
Federal slaughter in the U.S. was estimated at 2.18 million, little changed from the week before.
Herd shrinks
Profitability problems in Canada’s hog industry showed up in Statistics Canada’s Oct. 1 livestock report.
The breeding herd was 1.7 percent smaller than 12 months earlier. The market herd was down 5.7 percent.
Canada’s third quarter pig crop was 3.4 percent smaller than the same period in 2005.
Producers plan to farrow three percent fewer sows in October-December than last year.
With feed costs expected to be high for the foreseeable future, Ron Plain of the University of Missouri said in his weekly report that American producers will also need to reduce the size of the hog herd or else will need demand growth to keep profitable.
Bison mostly steady
Top quality carcasses in Canada from bison bulls younger than 30 months in the desirable weight range were unchanged at $1.58 Cdn to $1.80 per lb. with a weighted average of $1.70 per lb., said the Saskatchewan Bison Association.
Rail prices for youthful top quality bulls older than 30 months rose to $1.13 to $1.45 per cwt. hot hanging weight. Meat inventories in Canada remain high, but sales to Europe are improving, which supported prices.
The Oct. 10 U.S. Department of Agriculture hot carcass average price for bulls younger than 30 months was $182.08 US per cwt.
Lambs stronger
Ontario Stockyards Inc. reported that 1,213 sheep and lambs and 82 goats traded last week.
All classes of lambs sold at prices $15-$25 Cdn per cwt. higher on a light offering.
Sheep sold stronger and goats were steady.
