Fed cattle prices drop
Fed steer and heifer prices fell $2 per hundredweight last week.
Sales opened $2 lower and stayed there to the close, Canfax said.
Offerings were slightly smaller, but fewer cattle were passed.
Frustrated sellers sold cattle because the likelihood of improved
prices seems too far away.
Ontario and American buyers again showed solid interest.
Alberta prices June 6 were steers $88-$90 per cwt., flat rail
$146.50-$148.65 and heifers $88.25-$90.75, flat rail $148.50.
Wholesale beef values dropped for the twelfth consecutive week.
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The Montreal wholesale price is down $3 to $160-$162 per cwt. The price
has declined from the high of $191 at mid-March, or 16 percent, Canfax
said.
The Calgary market fell $2, with handyweight steers in a range of
$148-$163.
Slaughter plants are running large kills and working Saturdays.
Canfax said the U.S. market is dictating the trend in prices and there
is little hope of price improvement this month.
“At some point the lows will be placed this summer, but the jury is
still out on whether that’s in June or closer to July-August,” it said.
Feeder prices down
Feeder prices were lower on most classes.
Steers were steady to $5 per cwt. lower, with the larger decrease on
the lighter calves.
Heifers traded mostly 50 cents to $4 per cwt. lower than the previous
week.
Volumes were one percent larger than the week before at almost 35,000
head and 32 percent larger than last year.
Some of the increased volume can be attributed to a larger than normal
cow-calf run due to feed, pasture and water shortages in many places.
Slaughter cow prices lost another 75 cents due to increased volumes.
Since the beginning of May, slaughter cow prices have decreased
slightly more than $3 per cwt.
Canfax said feedlots are lowering their bids to get feeders that will
meet break-even levels in the fall.
Chicago fall live cattle futures are at levels that would suggest fed
cattle prices near the $1 Cdn per pound level in October before the
basis is factored in. Even with recent declines, some feeder prices
look too high to achieve these break-even levels.
Increasing barley costs have also forced feeders to lower bids.
Prices may see additional pressure on most classes over the next weeks,
although runs are expected to get smaller.
Stock cow trade picked up last week as animals moved to market because
of the drought.
Rain late in the week in some of the most desperate areas may slow the
selling.
Cow-calf pairs traded at $900 on more common types and older cows, and
up to $1,575 on higher quality pairs.
The average on cow-calf pairs for the week was a little more than
$1,250, with the bulk of trading at $1,100-$1,300.
A few bred cows and heifers traded at $750-$1,340, with the bulk of the
trade at $950-$1,200.
Hog prices rise
U.S. cash hog prices increased as the week progressed, even though the
value of the pork cut-out decreased.
Packers continued to raise bids for hogs due either to the need to fill
pre-sold meat orders or in anticipation of reduced hog marketings.
As a result, the week’s slaughter increased to about 1.9 million hogs.
The five-year average kill for the first week of June is 1.742 million.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent
lean, live equivalent) rose from $33.61 US per cwt. on June 3 to $36.27
June 6.
On average, the week’s hog price gained one to two percent over the
week before.
