Beef demand down
CALGARY (Staff) – Weak cattle prices driven by lower beef demand and soaring grain prices continued to taken their toll on all classes of cattle last week.
“Cattle are getting smashed,” said Errol Anderson of Palliser Commodities in Calgary.
Last week the American corn cash market was $4.30-$4.40 a bushel. At the same time, Alberta barley rose 30 cents in a single week, going from $3.55 to $3.80. Delivered to southern Alberta feedlots, barley was bid up to $4 a bushel. These prices could hold for a couple weeks, Anderson said.
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Feedlots are full and packers like Cargill and Lakeside are living off contract cattle bid on earlier. Prices for finished stock not contracted continued to drop, with the steer trade bringing $69 to $71 and heifers at $69 to $70.
Feeders faced with heavier than average calves last fall are feeding the cattle to “catch a grade” so carcass weights are coming down.
Steers below 1995 weight
Anne Dunford at Canfax said steers last week averaged 712 pounds compared to last year’s April weight of 740 lbs. Heifers averaged 665 compared to 690 at this time last year.
Feeder cattle sales were weaker throughout the week. Western liveweight steers ranged from $66 to $74 per hundredweight. Grass fed cattle held steady.
Cow trade pulled down by a lower hamburger demand saw D1 and D2 range from $35 to $46, and D3 at $31 to 40. The cow kill is around eight percent but this doesn’t indicate the beginning of a liquidation, said Dunford.
