Hogs dive
U.S. packers planned to reduce kill rates to reduce a surplus of pork. The cutback hurt hog demand and prices fell.
Weak demand from export markets is a major problem.
Iowa-southern Minnesota cash hogs fell sharply to $39.50 US per hundredweight July 24, from $44 July 24.
The U.S. pork carcass cut-out value fell to $59.41, down from $65 on July 24.
U.S. federal slaughter to Aug. 1 was estimated at 2.1 million, up from 2.03 million the previous week. Compared to the same week last year, slaughter was down 3.6 percent.
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Bison prices
The Canadian Bison Association said Grade A youthful bulls in the desirable weight range in Canada were $2.35-$2.65 per pound hot hanging weight. Grade A youthful heifers were $2.25-$2.45 per lb.
The cull cow and bull average was $1.40 per lb.
Weight, quality, age and delivery location affect final price.
Sheep, goats pressured
Beaver Hill Auction in Tofield, Alta., reported 1,111 sheep and lambs and 302 goats traded July 27.
Sheep and goats were under pressure with off types selling as much as $50 per cwt. lower.
Hair sheep, dairy-type goats and thin animals in all categories were lower, but fell-fed animals were steady.
Lambs lighter than 70 lb. were $100-$146 per cwt. Lambs 75 to 85 lb. were $121-$141, 86 to 105 lb. were $124-$139, and those heavier than 105 lb. were $118-$140.
Rams were $49-$70 per cwt. Ewe culls were $32-$52. Bred ewes were $82-$100.
Good kid goats were $150-$205. Nannies were $30-$87 per cwt. and mature billies were $100-$110.
Ontario Stockyards reported 2,103 sheep and lambs and 133 goats traded July 27.
All classes of sheep, lambs and goats were steady.
This cattle market information is selected from Canfax, a division of the Canadian Cattlemen’s Association. More market information, analysis and statistics are available by becoming a Canfax subscriber by calling 403-275-5110 or at www.canfax.ca.
Fed prices lower
Fed steers traded at $81.35-$83 per hundredweight live to average $81.96, down $1.06, and $136.50-$137.30 on the rail, Canfax said.
Fed heifers traded at $81-$82.25 per cwt. live to average $81.71, down 77 cents, and $136-$137.30 on the rail.
Despite the lower prices, market participants traded more head to prevent a backup in supply.
Volume traded was 27,839, up 16 percent from the week before and 60 percent larger than last year.
For the week ending July 25, Alberta slaughter was 49,605 head compared to 45,272 last year.
Weekly fed cattle exports to the U.S. as of July 18 totalled 7,487 head, almost steady with the previous week.
Prices will stay depressed until market-ready numbers drop later this year and beef demand improves, which normally happens in the fall.
Cows traded at $40-$55 averaging $46.89, up 48 cents from the week before. Butcher bulls were $50-$68 to average $58.70, down 17 cents.
Beef lower
U.S. beef movement is weak with retailers reluctant to buy stock when supply is large and lower prices might be in offing, Canfax said.
Choice cutouts fell 79 cents US to close at $142.26 and Select rose eight cents to close at $136.82.
The Calgary wholesale market for delivery this week was down $2 to $164 and Montreal wholesale is down $2 to $174.
Feeders struggle
Auction market volume of 16,878 was normal for this time of year.
But the number may not be large enough to entice feedlots to buy given that they can’t fill a pen, Canfax said.
With fed prices weak and feedlots struggling to make break-evens for feeders, it is a tough haul for cattle at auction markets, Canfax said.
Feeder prices were higher last week for most weight classes with some sales reporting trade up to $130 per cwt. or more.
On average, steers were up $1.10 per cwt. and heifers were 20 cents lower.
With conditions turning dry again auction volumes might grow.
Weekly feeder cattle exports to the U.S. as of July 18 were 2,260 head, down from 4,846 the week before.
The strong Canadian dollar, feed prices and weak beef movement are on the minds of cattle feeders.
Western feedlot occupancy is running at 44 percent capacity, and the U.S. is operating at 58 percent capacity.
Some smaller feedlots have opted to not fill up at all. Fed cattle supplies should tighten into the fall.
A light offering of cow-calf pairs fetched an average price of $973.35, down $47.90 from the week before.
With grass conditions poor in parts of Alberta more pairs might go to town. Pairs could continue to be split depending on quality and age.
What a difference a year makes. A little more than 12 months ago, many feared a global food shortage and crop prices soared to record highs.
This year, prices are falling as the weather in most crop production regions co-operates to produce good yields and the recession saps food demand.
Was the food emergency simply a flash in the pan?
Not if you consider the numerous responses it launched that have the potential to dramatically change agriculture in many parts of the world.
It shocked the Group of Eight wealthy countries, which includes Canada, to pledge to spend $20 billion on agricultural development in poor countries, especially in Africa. Money would be used for fertilizer, seed, improved storage and agricultural research instead of simple food aid.
It caused India and China to invest more heavily in their agricultural sectors, building up government-owned grain stocks and supporting farmers’ incomes to encourage them to stay on the land and produce more food for their huge populations.
It prompted several countries, particularly oil rich but farmland poor countries of the Middle East, to invest through private and state-owned entities in land in Africa, Russia and Ukraine to grow food and ship it home.
Investors have become more knowledgeable about the food production business and aware of the potential for profit.
Worries about food shortages gave proponents of genetically modified food another argument, namely that the technology is the best opportunity to increase yields to meet the world’s growing needs.
Some of these developments are welcome. Others raise concerns.
Rich countries must follow through on their commitment to spend billions to raise the skills and technology of farmers in poor countries.
Last year’s tight food supplies were transitory but the chronic malnourishment of almost one billion poor is not. This long-term shame can be solved only by a sustained effort to rebuild food systems in poor countries that provide the vast majority of the nutritional needs of the population.
Food trade is important but imports and food aid can’t replace an efficient, prosperous domestic agriculture sector when it comes to supplying affordable food.
Producers in developing countries should have access to technology, including GM seeds that can raise yields and incomes. Issues of affordability must be addressed, but blanket bans of GM technology tie farmers hands.
Third World agricultural development should be oriented mostly to feeding domestic populations. The land grab in poor regions by richer countries is disturbing because of the potential to disrupt local food security.
Poor countries, with help from the United Nations, should develop codes of conduct for land buying to ensure such foreign investment helps, not hinders, food availability.
But as we concentrate on the details of securing adequate food supply, we must not forget basic economic principles.
World hunger will disappear if farmers have the appropriate economic incentive to grow food and the poor have enough money to buy it.
