Few fed cattle sold
With the border closed and packers operating at less than half capacity, the market was almost moribund.
A few Alberta cattle traded at $83.50-$88 per hundredweight, flat rail $139 with cash sales representing about 1,500 head.
Other supplies owned by packers made up a small percentage of the volume.
Some cattle bought before the bovine spongiform encephalopathy discovery May 20 are still waiting for slaughter dates.
The estimated kill for the week ending May 24 was 30,500 head, compared to almost 70,000 head the week before. Last week’s kill was estimated at 27,500, or about 40 percent of normal for this time of year.
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Canfax determined that 300,000 head of fed cattle would be ready for market May 26-July 7.
Domestic retail beef movement on the May 24 weekend was reported as good. Some retailers supported the industry and increased their beef features.
While last month’s U.S. cattle on feed report indicated heavy placements into feedlots, cattle on feed numbers remain down four percent.
American cattle feeders aggressively sold to take advantage of prices, feeding profits and a futures market that still signals lower prices this summer.
Carcass weights are falling.
Coupled with good demand, U.S. beef prices hit record levels.
Feeder trade is off
Very light feeder trade was reported, said Canfax.
Prices were lower on all classes of cattle.
Light steers saw the largest decrease after holding prices somewhat steady the week before. Most feeder steers under 800 lb. were $10-$20 per cwt. lower. Heifer prices were mostly $5-$10 lower.
The volume sold in Alberta was slightly more than 4,600 head, down 53 percent from the previous week and 86 percent less than last year.
Few slaughter cows sold. Prices were $36-$46 per cwt. on D1, 2 cows. The average at $41 per cwt. was down $19.
While BSE uncertainty continues, feeder prices will be under pressure, particularly on heavier cattle.
Some light cattle may be sold into grass markets, also likely at lower prices, said Canfax.
Volumes are expected to remain light for now.
Slaughter cow sales were virtually non-existent. Bred cow trade was $770-$1,180. Cow-calf pairs still seemed fairly strong with the top end at $1,780. The lower end of the pairs sold at $1,040 with the bulk of the trade at $1,200-$1,600.
Hog prices fall
More hogs were available in the United States last week, but wholesale pork prices climbed, said Manitoba Agriculture.
Because of the good hog supply, the Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) decreased from $45.33 US per cwt. on May 27 to $44.83 midweek, but rose to $45.45 on May 29. The week’s hog price averaged five percent below the previous week.
Lean hog futures prices for July and later months rose. According to U.S. Department of Agriculture data, May was the first profitable month for north-central U.S. farrow-to-finish operations since July 2002. The data show that producers have lost money for 11 of the past 13 months.
The exchange rate impact lowered Canadian hog prices by 10 percent compared to the same week last year.
The USDA’s monthly hog report showed the April pig crop, pigs per litter and number of sows farrowing as traders had estimated. All numbers were down from last year, helping to support futures prices.
The inventory of sows and gilts as of May 1 was slightly more than expected.
