Beef volumes down
Fed cattle prices firmed last week as lighter offerings tightened packer inventories. On the average, prices were $1.50-$2 per hundredweight higher.
The best prices were paid for heifers that were not overweight.
Canfax said Alberta prices July 23 were steers $79.10-$81.70 and heifers $77-$82.
Although cash cattle and wholesale prices have moved higher, the actual movement of beef is still slow with ample supplies of beef and pork in the system.
Canfax said tighter cattle supplies should be the case in Western Canada through August, but improved price prospects will be limited by conditions in the United States.
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Feedlots were not able to get current in July so they will try to sell more cattle in August than first thought. Canfax said price rallies should be looked upon as opportunities to sell market-ready cattle.
Many auction barns reported slaughter cows as the majority on offer this week, although numbers remained light overall.
Average prices fell due to limited quality and volume. The bulk of sales were at $50-$58 per cwt. Direct to packer sales on good quality cows were reported as stronger with trade in the low $60s.
Canfax’s outlook is for firm cow prices.
Feeder cattle offerings were light as many producers are in the field taking off hay crops.
Prices appeared to be steady to slightly lower but the light trade made it hard to determine trends.
Volumes are expected to grow in August and prices will start to fall for yearlings and feeders because feedlots have been losing money.
In the bred cow trade, sales were rare. Prices were $450-$950. Bred heifers were $500-$800. Cow-calf pairs sold at $600-$1,320 with the bulk at $800-$1,100 on good quality.
Hog prices look better
Improved packer profitability allowed hog plants to bid more aggressively for prairie pigs.
Canadian prices were also helped by the end of the labor dispute at the Fletcher’s plant in Red Deer, Alta., and the falling Canadian dollar.
Nearby futures have also showed some increases. However, the long-term outlook remains poor.
The cash price at Omaha, Nebraska, on July 24, was unchanged from the week before at $37 (U.S.) per cwt.
