Feedlots won’t sell low
After posting weaker prices early in the week, fed cattle sales improved.
Feedlots were reluctant to sell at weaker prices, said Canfax. Steers weighing 1,400 pounds weren’t reported sold before Aug. 27, when they went for close to $81 per hundredweight. A fair number of cattle are selling to the United States at $91-$92 per cwt.
On Aug. 27, steers sold for $78.20-$83.29 per cwt., flat rail from $128.35-$131.85, and heifers from $79.75-$83.20, rail at $136.80.
Beef prices are drifting lower. The Calgary wholesale price is expected to be $138-$144 per cwt. this week.
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Canfax said there are still overweight cattle on the market, but a strong end last week offered hope of some improvement this week, particularly for cattle at the right weight.
Cow prices were softer in Western Canada last week as demand tapers off due to poor beef movement. Some barns reported only good cows bringing $50 per cwt. by week’s end. Cows were down three cents on average and the outlook is for steady to weaker prices.
Volumes of feeder cattle and yearlings picked up last week, marking the first official week of the fall run, Canfax said.
Numbers increased by 21 percent from last week, and this week is expected to be much larger. Compared to this time last year, the number on offer was 23 percent higher.
Even though the run is on, prices might not fall quickly and optimism of a strong feeder market is still high.
Canfax anticipates continued high yearling sales, with slight fluctuations, and a gradual drop of several cents in the next few weeks.
In slow stock cow trade, bred cows ranged from $500-$900. No bred heifer sales reported this week. Cow-calf pairs sold from $750-$1,360 with the bulk from $1,000-$1,200 on good quality. The outlook is for steady prices.
Hog prices stay lower
Manitoba Agriculture says lower wholesale pork prices and ample hog supplies gave United States packers no incentive to bid higher prices for hogs last week. The U.S. National Pork Producers’ Council predicted that with weekly slaughter levels expected to be about 1.9 million head for the next six months, hog prices could be in the $20s per cwt. (U.S.) this fall and are unlikely to rise much above $30 until spring 1999.
There is also concern that if hog slaughter increases to 2.1 million head in any week this fall, packer capacity could become an issue.
This could result in producers going on a waiting list to get hogs marketed. So far, hog market weights are declining rather than increasing, which could mean producers are selling hogs early to avoid lower prices down the road.
The weak Canadian dollar continues to benefit hog producers. Manitoba Index 100 hog prices (including premiums) rose to $135.55 per 100 kilograms on Aug. 25, but fell close to $130 ckg on Aug. 27.
