Fed market falters
The chaos in equity markets and worries about weakening demand for meat caused fed prices to drop $2-$2.75 per hundredweight last week, said Canfax.
The Canadian dollar dropped sharply, offsetting some of the damage.
Steer prices averaged $89.10 per cwt., down $2.66 while heifers were $88.91, down $2.15.
Sale volumes rose four percent to about 18,000 head.
The cash to futures basis weakened to $15.96 under compared to $11.42 under the week before.
Exports to the U.S dropped five percent to 12,410 head.
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That was down 47 percent from the same week last year.
A recovery in cattle markets will require a recovery in financial markets, Canfax said.
D1, 2 cows in Alberta saw lower demand causing prices to fall to $35 to $51 per cwt., with an average of $43.19, down $5.09 from the week before, said Canfax.
Exports of slaughter cows and bulls totalled 3,746 head, up 27 percent from the week before.
Butcher bulls were $45 to $66 and averaged $57, down $1.41.
Outlook: Non-fed slaughter prices should continue lower with increasing supply.
Feeder values down
Feeder cattle prices fell along with fed prices, said Canfax.
Alberta auction volumes fell 10 percent from the week before to 45,379 head. That was two percent higher than the same week a year ago.
Steers averaged $2.73 per cwt. lower and heifers were $2.13 lower.
Alberta steers weighing more than 700 lb. fell $1.63 and heifers were $1.45 lower.
Steers lighter than 700 lb. were $2.89 lower and heifers were $2.52 lower.
Feeder exports to the U.S. totalled 11,878 head two weeks ago, up from 7,576 the week before but down from 20,092 last year.
Falling barley prices and a weakened loonie would normally strengthen feeder prices but that won’t happen until the financial crisis calms.
Bred cows were $410 to $750. Cow-calf pairs saw no trade.
Beef price weakens
U.S. Choice cutouts fell $3.52 to $150.17 US while Select fell $3.21 to $143.89.
AAA cutouts were $1.68 Cdn and AA were $1.64.
Calgary wholesale prices fell as interest turned to turkey for the Thanksgiving weekend.
The Calgary wholesale price for delivery last week was $156 and Montreal was $167.
On feed numbers grow
The number of cattle in Saskatchewan and Alberta feedlots stood at 788,362 head, down eight percent from the year before, but 14 percent more than the Sept. 1 total of 689,256 head.
Placements in September totalled 286,248, an increase of 15 percent from the same time last year.
The largest percentage increase was in the lighter than 600 lb. class with 42 percent more animals placed this September compared to 2007. Spring calves are hitting the markets slightly earlier this year, Canfax said.
September marketings were 172,741, down six percent.
Hog prices fall
An abundance of hogs and worries that the financial crisis will cause consumers to eat less meat caused U.S. hog prices to fall. Analysts also believe the rising U.S. dollar will hurt pork exports.
Iowa-southern Minnesota cash hogs Oct. 10 were $49 US per cwt. down from $53.50 on Oct. 3.
The U.S. pork carcass cutout value fell to $68.58 Oct. 10, down from $72.87 Oct. 3.
U.S. slaughter for the week ending Oct. 11 was estimated at 2.375 million, up from 2.32 million Oct. 4.
The weaker Canadian dollar helped offset the drop in markets.
Ron Plain of the University of Missouri said U.S. gilt and sow slaughter data show the potential for at least a slow reduction in the breeding herd.
He said the U.S. breeding herd needs to shrink by at least five percent from last year’s level and possibly 10 percent if exports start to slip.
Bison stronger
The Canadian Bison Association in Regina said the slaughter market is steady and the falling loonie supports prices on exports.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were mostly $2.30 to $2.50 per lb., with sales to $2.60 per lb. hot hanging weight.
Heifers were $2.25 to $2.40 per lb. with sales to $2.50.
Cull cows and bulls averaged $1 per lb. Weight, quality and delivery location affect final price.
Breeding animals culled
Beaver Hill Auction in Tofield, Alta., reported 1,091 sheep and lambs and 117 goats traded Oct. 6.
Buyers were cautious.
There was fair demand for lambs and goats ready for slaughter but feeder and off-types were hard to sell.
Large numbers of breeding stock were sold.
Lambs lighter than 70 lb. were $80-$128 per cwt. Lambs 70 to 85 lb. were $95-$120, 86 to 105 lb. were $95-$113 and those heavier than 105 lb. were $95-$118.
Rams were $25-$50 per cwt. Ewes were $20-$44 per cwt.
Good kid goats were $150-$205. Nannies were $55-$81 per cwt. and mature billies were $100-$150.
Ontario Stockyards reported 1,663 sheep and lambs and 101 goats traded Oct. 6.
Lambs and goats were steady. Sheep prices fell.
