Fed cattle prices up
Fed cattle prices climbed late in the week and weekly steer averages gained 50 cents per hundredweight. Heifers were flat due to a medium quality offering. Smaller volumes were likely the biggest factor in stronger prices.
There was no American packer interest. Average fed prices in the United States fell about $1 per cwt.
Alberta prices July 20 were steers $88.55-$91.65 per cwt., flat $147.85-$149.55 and a light test of heifers at $91-$91.25.
Beef sales and movement were good.
The Montreal price is down by $2 to $150 while Calgary prices are mostly steady with handyweights at $142-$156 and heavy carcasses at $137-$140.
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While total kills are down slightly in 2000, heavier carcass weights mean packers are moving more tonnage.
Canfax said feeders are fairly current in their marketings, but weights are increasing. Packers are not killing as many cattle as a year ago due to fewer and smaller Saturday kills.
The U.S. Department of Agriculture cattle-on-feed report July 21 showed U.S. feedlots still have a record number of animals on feed. That should keep a damper on the U.S. market for some weeks, so Canadian prices have little hope of a rally.
But the basis might improve as local cattle feeders move through their front-end numbers, said Canfax.
Cow trade was steady as small volumes keep prices strong. Most good D1, 2 cows traded from $60-$70. Grain-fed cows fetched a premium.
Prices are $5 higher than a year ago and are expected to stay mostly steady through August, Canfax said.
The feeder cattle market saw strong prices and light offerings, despite the weaker fed market. Quality and condition were key factors in prices.
No changes are expected in the next few weeks.
Drought in southern Alberta is pushing up hay prices. Pincher Creek prices are reported as high as $120 per tonne.
In light stock cow trade, bred cows ranged from $780-$1,250 with bred heifers from $750- $1,100. Cow-calf pairs sold from $1,000-$1,800.
Hog prices lower
Hog prices fell on both sides of the border last week.
Falling lean hog futures prices prompted U.S. packers to reduce their bids for hogs at mid-week.
Packer margins are squeezed.
However, there is no indication that the supply of hogs will become excessive in the short term.
Iowa-southern Minnesota hog prices (at plant, 51-52 percent lean, live equivalent) edged up early in the week, but then fell back to $49.81 (U.S.) per cwt. on July 21.
That was 54 cents down from the previous week’s close.
