More weight not needed
Fed cattle prices continued to lose ground last week, dropping 25 cents per hundredweight on the steer average and $1.50 on the heifer average. Thursday’s trade saw steers bring $79.50-$81.75, flat rail $133.35-$134.35 and heifers $78-$81.65.
Canfax said a large supply of beef making its way through the system is becoming increasingly difficult to move. Wholesale prices are slipping as packers try to move beef out.
Larger price discounts are starting to show up on heavier carcasses and boxed beef, a trend that will likely continue into early fall.
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With lots of meat available and slow summer demand, Canfax says the weak market will continue. Producers seem to be worried that the market might take off without them and are dragging their feet when it comes to marketing, resulting in heavy carcasses. They’d do better to keep current, Canfax advised.
Cows gained $2 per cwt. in Western Canada this week and the new price is expected to hold. Many ranchers are sending cull cows to market.
Feeder cattle prices were under pressure on most weight ranges.
Prices fell $1-$5 per cwt. depending on the weight class.
Rain and seasonal declines in volumes slowed business at many markets. Canfax said this shouldn’t last long, because auction rings are reporting increased listings for the coming weeks.
Quality continues to be a factor in prices, but pressure from the lower fed cattle market is also influencing the marketplace.
Bred cow and heifer sales continue to be light. Bred cows ranged from $500 to $950, and bred heifers from $500-$750. Cow-calf pairs sold on a wide range, from $500-$1,375 with the bulk from $800-$1,100 on good quality.
Pork prices weak
Weak retail demand for pork had wholesale prices on the defensive last week, leading U.S. packers to bid down hog prices. By July 10, prices were $35-$37 per cwt. (U.S.) in Midwest markets.
With profit margins tight and ample supplies, packers will pay more only if demand rises.
Canadian prices were also down, falling about $8-$10 per 100 kilograms compared to the previous week.
