Slaughter prices vary
Fed cattle were mostly 75 cents per hundredweight lower than the week before.
Canfax members reported trading about 33,000 head, up 11 percent from the week before. All packers bid, but because they held good inventory they were not aggressive.
Similar numbers were traded to the United States but at lower prices.
The Canada-U.S. basis shifted with the value of the loonie. On Aug. 18 with the currency at 82 cents US, the basis was slightly more than $12 under.
Alberta prices Aug. 18 were steers $83.75-$84.15 per cwt., $139-$139.85 flat rail, and heifers $83.85-$84.65, $139 flat rail.
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Canadian slaughter rose to more than 70,000 head two weeks ago for the first time since the border opened, said Canfax.
U.S. trade was mostly $2 lower and it is anticipated it will slip again this week. Alberta will likely follow suit but the exchange rate is the wild card.
Beef price dips
U.S. cutouts backed off with Choice trading 31 cents US lower, while Select fell $1.35. Compared to a year ago, prices were down $6-$7.50, said Canfax.
More beef moved in the U.S. with load counts up more than 19 percent.
Canadian cutouts from Aug. 5 were down slightly on AAA product and $1.50 Cdn lower on AA product. The Calgary wholesale price for delivery this week is steady to $2 lower at $141-$144.
Analysts expect supplies of beef and pork will be large this fall.
Feeders come forward
Feeder cattle volumes took off last week as producers responded to stronger prices, Canfax said. About 40,000 head moved through Alberta auction markets, up 92 percent from the week before and double a year ago.
Most were yearlings coming off grass, because calf numbers are limited.
The extra supply met good demand and all weight ranges traded steady to slightly higher, Canfax said.
The exception was 900 lb. and heavier steers that rose $1.
D1, 2 cows came under pressure, falling $3, while butcher bulls traded $1.50 lower likely due to more cull animals moving through auction markets and less speculative buying.
Yearling volumes are anticipated to last into the middle of September and by that time more calves should be moving. Yearling demand is expected to remain relatively strong.
Northern Alberta remains the only location trading bred cows and heifers. Most trade was at $450-$650 with tops to $700. Cow-calf pairs in central and northern Alberta were $500-$950 with tops to $1,190.
Hog prices rise
Increased slaughter levels raised the demand for hogs, resulting in higher hog prices. Profitable operating margins prompted the increase.
USDA estimated week-to-date slaughter through Aug. 20 at 1.991 million head, up 3.8 percent from the week before.
The Iowa-southern Minnesota cash price Aug. 19 was $50 US, up from $49 the week before.
The USDA composite pork carcass cutout value Aug. 19 was $74.48, up from $72.72 Aug. 12.
The Chicago lean hogs nearby futures contract rose with the strong cash market, but gains in later contracts were limited by trader concerns that hog numbers will increase in the fall.
Some traders are also wondering if increasing cases of avian flu and other livestock diseases will increase export demand for American pork.
Sheep weaken
Ontario Stockyards reported 2,771 sheep and lambs and 169 goats traded. All classes of lambs and sheep sold at prices up to $5 lower. Goats sold steady.
