Cattle prices fall
Fed cattle prices fell last week, averaging $2 per hundredweight lower. Heavy animals saw the deepest price declines.
At times, two-thirds of the offering was made up of steers heavier than 1,400 pounds.
“The road seems long as we attempt to clean-up these ‘way past ready’ cattle,” said Canfax.
A large number of cattle were sold to the United States and to the Ontario market.
Prices Aug. 20 were steers $78.75-$80.50 per cwt. and heifers $78-$80.
Most grocery operations have already bought supplies for the Labor Day weekend and beef movement is expected to slow a little, leading to slipping wholesale beef prices.
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Packer inventories are generally comfortable and Canfax expected no immediate improvement in cattle prices.
“Producers need to keep clearing these cattle through the system, even though prices have been volatile and erratic to say the least,” said Canfax.
The cow market was under pressure last week with live prices $2-$3 per cwt. lower. Local supplies increased in some areas. The outlook is for steady to weaker prices
Feeder cattle prices were mostly steady last week. Volume picked up slightly, but was still slower than the same week a year ago. Condition was a big factor in pricing.
An increase in yearling offerings coupled with the depressed fed cattle market will likely keep a lid on feeder prices, Canfax said.
Feedlots are also keeping an eye on rising barley prices on the futures market.
In the stock cow trade, bred cows were lightly tested with a few trading between $700-$950. No bred heifer sales were reported. Cow/calf pairs traded between $570-$1,475 with the bulk between $850-$1,150.
Low hog prices expected
The U.S. hog market continued to have plentiful supplies. American packer bids slipped in the middle of the week but rose at the end. Omaha closed the week at $36.75 per cwt., up 75 cents from the previous Friday.
Canadian prairie hog prices also dipped mid week before rising, but the outlook for fall is still for lower prices.
U.S. hog slaughter is running 10 percent ahead of last year at this time. Canadian slaughter is about three percent ahead of last year’s pace.
