U.S. fed market rallies
Fed steers were $4.50 per hundredweight higher last week and fed heifers were $3.25 higher, said Canfax.
Stronger prices in the United States helped lift prices in Western Canada, which sparked large volumes. Canfax members reported 37,760 head trading, 29 percent higher than the week before.
Prices in the U.S. climbed despite large packer losses.
There is a shortage of high-grading cattle in the U.S., forcing packers to pay more. Also, the hot summer is hurting grading, but cattle are still putting on weight, with overall U.S. carcass weights for the week ended July 23 averaging 775 pounds, up three lb. from the week before and up 13 lb. from the year earlier.
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The Canadian market saw local and American bidders with the most activity midweek. By Aug. 4, the market appeared a bit softer as buyers filled their needs, said Canfax.
Alberta prices Aug. 4 were steers $85-$88 per cwt., flat rail $142.50-$143.35 and heifers $85-$87.45.
The large volume traded helped feedlots keep current, putting them in a strong bargaining position.
The U.S. market is expected to hold its gains this week, providing a strong floor to the market, and feedlots will not want to sell at lower prices.
Packers force beef higher
U.S. packers reduced slaughter days and closed some plants to reduce beef supply to try to force prices higher. They succeeded with the Choice rising nearly $5 US per cwt. from the week before and Select up nearly $4. Cutouts might crack $130 this week.
Although Canadian cutouts had been running at a slight premium to the U.S., the recent surge in the U.S. should narrow that relationship again. Canadian cutouts were not reported due to August long weekend disruptions at the reporting source.
Stronger Calgary wholesale prices were necessary to keep pace with the hot cash cattle market, said Canfax.
Calgary carcass business for delivery this week was $5-$7 Cdn higher in a range of $147-$149 per cwt.
Feeders mostly steady
Feeder volumes popped back up with about 16,000 head moving through Alberta auction markets, up 19 percent from the week before and 79 percent larger than the same week a year ago, said Canfax.
Averages were mostly steady to stronger on all weight ranges, but there were few lighter feeders moving.
Steers 500-600 lb. traded $3 higher, while 600-800 lb. were $1 stronger. Feeder steers 800-900 lb. and heavier seemed to have settled in a trading range with averages steady to 25 cents lower.
Heifers 500-700 lb. raised $2.75 per cwt. and 700-900 lb. were $1.50-$1.75 higher. Heifers 900 lb. and heavier were steady.
D1, 2 cow prices strengthened by $3, while butcher bulls rose by $5.50.
Canfax expects feeder cattle volumes will increase in the next week or so as early grass cattle start to trade.
The market on heavier cattle appears to have settled at about $112, but stronger fed cattle average prices may put a little more spring into feeder prices.
D1, 2 cows are expected to trade between $35-$45 until volume increases.
Stock bred cows strengthened slightly with trade in central and northern Alberta at $500-$700. Cow-calf pairs were mostly $500-$900 with tops to $1,200.
Hogs mostly steady
American hog prices slipped early last week due to weak demand as many plants were closed for the long weekend. But the market picked up as the week progressed with packers posting positive margins and the cutout rising.
The recent U.S. heat wave has slowed weight gain and delayed deliveries, but traders now believe prices will come under pressure as the weather moderates and more hogs reach market weight.
The Iowa-southern Minnesota cash price Aug. 5 was $50.50 US, the same as the week before.
The composite pork carcass cutout value Aug. 5 was $72.99, up from $72.45 the week before.
The Chicago lean hogs futures market reflected traders’ concerns that a seasonal increase in marketings in the near future will pressure cash prices lower.
Sheep prices steady
Ontario Stockyards reported 1,816 sheep and lambs and 177 goats traded. All sheep, lambs and goats traded actively at steady to stronger prices.
