Fed cattle down
With weak demand, fed cattle prices dropped about $1 last week.
Steers averaged $88.13 per hundredweight, down $1.07 while heifers were $87.42, down $1.17.
Many feedlots have been pulling fed cattle forward and are current in their marketing, Canfax said.
Sale volumes fell three percent from the week before to 22,000 head.
The cash to futures basis widened to $8.88 under compared to $6.47 under the week before.
Fed exports to the United States totalled 10,066 head, up six percent from the week before and 35 percent higher than the same week last year.
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.
Show lists for the rest of this month should be relatively small, said Canfax.
Packer interest will remain light and prices are expected to be steady.
June fed contract deliveries will soften demand for cash cattle.
U.S. fed cattle cash prices could bottom out in the next week or so and a recovery there might firm the Canadian market.
Beef weakens
U.S. Choice cutout fell eight cents to close June 12 at $156.80 US. Select fell 73 cents to $152.47, said Canfax.
In the last two months, trim volume has risen 81 percent and grind volume is up 10 percent, while Choice product volume is down seven percent over the same period.
Consumers are expected to continue to move toward these cheaper products as food prices increase.
The Canadian AAA-AA spread widened to $3.58 Cdn the week of May 30 with some pick-up in AAA product.
The Calgary wholesale market for delivery this week was down $2 at $151-$154. Montreal fell $2 to $158-$160.
Light feeders stronger
Feeder cattle saw steady demand despite the higher feed prices, said Canfax.
Sales volume fell to 23,025, down 18 percent from the week before. That was up 32 percent over last year.
Steers heavier than 700 pounds rose 90 cents per cwt. from the week before and heifers were 32 cents higher.
Steers lighter than 700 lb. were 10 cents lower while heifers were five cents lower.
Canadian feeder exports totalled 12,104, up 12 percent from the week before and double the pace last year, said Canfax.
Some cattle were likely held over into this week because of heavy rain in some places, Canfax said.
U.S. demand for feeders should be steady through mid July.
There was no trade in bred cows.
Cow-calf pairs averaged $823 for the week, $63 lower than the week before. The range was wide at $350 to $1,150 reflecting variable quality.
D1, 2 cows fell $1 to $44. Butcher bulls averaged $52.
Cattle on feed
The number of cattle on feed in Alberta and Saskatchewan June 1, was 10 percent less than the year before and down eight percent from 2006, said Canfax.
The number of cattle placed in May was down seven percent from last year.
Placements of heifers lighter than 600 lb. and in the 600-699 lb. range were higher than last year, but steer placements in the lightest class were down and were close to steady in the 600-699 lb. range.
This higher heifer placement follows the seasonal trend, but may also indicate more feeder steers being exported and a large number going on grass.
May placements of 700 lb. and heavier cattle were down by 13 percent, a drop compared to last year, reflecting high prices and tight seasonal supply.
The Canfax survey group in May marketed 163,036 head, down four percent from last year.
The number of steers and heifers that were either killed domestically or exported for slaughter in May totalled about 196,000 head, down one percent from last year.
The “other disappearance” category totalled 48,225, down 12 percent from last year.
The majority of the May feedlot disappearance is the seasonal movement of feeders to grass.
Analysts expected the U.S. cattle-on-feed report June 20 will see May placements down eight to 10 percent.
Hog prices fall
Midwest flooding caused two U.S. hog slaughter plants to suspend operation late last week.
A shortage of shipping containers is reducing U.S. pork exports.
Soaring feed costs are raising the break-even prices for hogs.
Ron Plain of the University of Missouri said December futures prices in the mid $70s look unrealistically high.
Pork prices slid and cash hogs in the U.S. fell.
Iowa-southern Minnesota cash hogs fell to $52.50 US per cwt. June 13 compared to $54.50 to $55 June 6.
The U.S. composite pork carcass cut-out value fell to $74.75 June 13 down from $76.76 June 6.
U.S. slaughter for the week ending June 14 was estimated at two million, down from 2.1 million the week before, but 6.2 percent more than last year.
Bison steady
The Canadian Bison Association said markets were steady.
Some markets report discounts on overfat heifers. Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.05-$2.25 per lb. hot hanging weight. Heifers were $1.95-$2.20 per lb. Cull cows and bulls were 90 cents to $1 per lb.
Lambs lower
Beaver Hill Auction in Tofield, Alta., reported 606 sheep and lambs and 64 goats traded June 9.
Lambs fell $10-$20 per cwt. Cull ewes and rams were steady to higher.
Goats were steady.
Lambs lighter than 70 lb. were $127-$180 per cwt. Lambs 70 to 85 lb. were $130-$155, 86 to 105 lb. were $129-$151 and those heavier than 105 lb. were $130-$146.
Rams were $40-$62 per cwt. Cull ewes were $36-$58 per cwt. Good kid goats were $167.50-$210.
Nannies were $66-$98 per cwt. and mature billies were $120-$165.
Ontario Stockyards reported 2,020 sheep and lambs and 61 goats traded June 9.
Light lambs were down $10 per cwt. and heavy lambers fell $10 to $20.
Sheep fell $5 and goats were firm.
