Beef movement improves
The dog days of summer usually indicate a seasonal low for the feeding industry, yet last week’s strong feeder and yearling prices got people talking.
Canfax reported yearlings in northern Alberta went as high as $1.11 and lightweight steers climbed to $1.60.
Analysts predict the lightweights under 600 pounds could hold at around $1.50 and yearlings will continue to hold steady.
The early part of the feeder run has started with 70 percent more head traded this week than last. At just under 27,000 head, volumes are up three percent from the same week last year.
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Volumes should continue to grow rapidly, as special yearling sales grow in number heading into the fall run.
Last year about 85 percent of feeders’ pen space was occupied compared to this year where 70 percent is filled. Last year people held cattle back because of low fed prices but this year the market has improved so cattle are moving steadily.
Cattle are moving on time to the slaughterhouses.
More of the same is expected in the next couple of weeks. The larger kills of late have put ample beef supplies in the pipeline so movement is critical right now, said Canfax.
Bred cows on offer ranged from $550-$1,000 on a few sales. No prices are available on bred heifers. Cow-calf pairs sold from $900-$1,525.
Hog prices rise briefly
Hogs showed some minor improvement over the last week with Toronto trading Index 100 hogs at $1.36.
Alberta was about the same while Saskatchewan got an average price of $1.40. Manitoba reached $1.45 but long-term prices are expected to be on the low side. Prices overall are eight percent lower than last year at this time.
The upturn in hog prices is expected to be fleeting as the United States continues to hold large stocks of pork in storage and wholesale pork prices will come down.
Closing futures to the end of the year continue to be discouraging.
