Fed cattle prices pushed up
Sellers were able to hold out long enough to force packers to increase
fed cattle bids last week, Canfax said.
Steers rose $2.25 per hundredweight and heifers rose $1.50. Once prices
rose, sellers were quick to act and the volume sold increased 30
percent despite the short holiday week.
Alberta prices July 4 were steers $89.25-$92 per cwt., flat rail
$150.35-$150.95 and heifers $89.50-$92, flat rail $150.75.
Canfax said beef movement is holding its own for this time of year.
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Wholesale prices dropped, with Montreal down by $2-$3 per cwt. at
$155-$157. In Calgary, the handyweight steer price is steady to $1
lower at $147-$160, with most at $147-$149.
Canfax said the volatile exchange rate is a key factor in price
direction.
Aside from the currency issue, cattle supplies are adequate for the
next few weeks, meaning prices might remain in the low $90s.
After that, they should start to improve as marketings decline into
August.
Feeder prices dip
The feeder market lost ground as higher grain prices and weak fed
prices early in the week took their toll.
Offerings of regular weight feeder cattle were light, with cow-calf
pairs making up most of the volume.
A small percentage of calves are being sorted from the cows and are
trading separately.
Average prices on most weights of feeders were $2-$4 per cwt. lower,
with 800 and 900 pound cattle trading steady.
Total sold during the holiday week was down 40 percent from the
previous week, but was 55 percent higher than the same week a year ago.
Weekly offerings have consistently been larger than last year since
early May, with recent volumes well over historic normals. The cow-calf
pair run is the factor in this change.
Canfax said that as cost of grain creeps higher, lighter cattle will
feel the most price pressure.
The loss of equity suffered by the cattle feeding sector will see more
empty pens than has been the case in recent years.
The cow-calf pair run is generally centred in the central and
northeastern parts of Alberta, although the Edmonton area is starting
to see more movement.
A small offering of bred cows and heifers fetched $800-$1,000. Pairs
were $900-$1,580, with most at $1,050-$1,250.
Supply sends hogs down
The holiday-shortened slaughter week in the United States resulted in
packers paying less for the plentiful supply of hogs.
The week opened with lower hog prices than last Friday, but prices
increased slightly as the week progressed.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent
lean, live equivalent) rose to $41.98 U.S. per cwt. midweek from
$41.37 on July 1 . On average, the week’s hog price was about four
percent below the previous week’s price.
Canadian price response to the weaker U.S. market was muted due to the
positive effect of a lower Canadian dollar and the one week lag factor
in processor contracts.
