Cattle prices dropping for two reasons
Fed cattle prices last week fell $1 to $2 per hundredweight from the week before.
Canfax says the driving factor was the lower United States cash market, but uncertainty was also caused by the threat of the strike at Cargill’s High River, Alta. facility, which is the largest beef kill plant in Canada.
On July 10, steers brought $80.50-$82.25 and heifers $78.75-$81.50 per cwt.
If the dispute continues at Cargill, feedlots might keep cattle longer to make them more appropriate for the U.S. market. However, the tight, attractive basis will broaden as reduced competition in Canada makes itself felt.
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Canfax predicts fed cattle prices in the near term will be in the low $80s if the strike is short and the high $70s if it drags on.
Feeder cattle prices were steady in light trade last week. No change is expected.
Hog prices heading down
Hog prices in Canada were on a down trend last week. Packers are not making any profit and that is limiting the potential for price increases.
In the U.S., Omaha’s cash price July 11 was $59 a cwt., the same as last week. Food safety concerns in Japan are keeping a lid on pork exports to that country.
Sheep prices are steady this week. In central Alberta, the railgrade price is $2.20 a pound. Live weight prices are $1.08-$1.12 a lb. for lambs 90-110 lb. and $1.03-$1.08 for lambs 110 lb. and up.
Slaughter sheep live are 30-35 cents a lb. Goats are 90 cents a lb. for 50-60 lb. and 75-85 cents a lb. for kids 60-90 lb. Billies and nannies are 25 cents a lb.
