Fed cattle up
Fed cattle prices last week were generally $1-$6 per hundredweight higher.
Slaughter prices increased to near $23 per hundredweight on steers and $28 per cwt. on heifers.
As well, speculative bids have increased the price to highs of $70, Canfax said.
With the new Alberta top-up program, returns from the market plus the program on eligible cattle will be between $1.04 and $1.08 per cwt., Canfax said.
Sales of fed cattle increased from the week before, but were light compared to early August.
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Due to the new program, volumes through auction markets increased significantly with producers selling in a competitive market situation.
News of export permits for boxed beef being issued and anticipation of beef actually moving south after the long weekend added optimism to the industry.
This, combined with the expectation of tighter supplies in September, should see fed cattle prices steady to stronger in the coming weeks, Canfax said.
With record high beef prices in the U.S., Canadian packers will earn generous margins on any Canadian beef that they can sell into that market.
The United States, Mexico and Russia are the only countries to have officially confirmed partial opening of their borders to Canadian beef.
In 2002, sales to the U.S. made up 78.5 percent of the total amount exported, while Mexico was 10 percent and Russia a little less than one percent.
Total slaughter for the week ending Aug. 26 was 66,941 head, up five percent from the previous week and the highest since the week ending May 17.
Steer prices down
Alberta auction markets saw the largest volume since May 20, with almost 15,000 head traded.
Feeder steers less than 800 pounds were $1-$4.50 per cwt. higher, Canfax said.
Steers 800-900 lb. were $5.50 higher and 900 lb. $5 higher than the week before.
All weight ranges for steers were down $9.50-$20 from last year at the same time.
Heifers traded $1.50-$6 higher than the week before with the exception of 600-700 lb. heifers trading $1.25 lower.
D1, 2 cows were steady with the week before.
In anticipation of tight supplies in the fourth quarter, yearlings held strong and are expected to remain steady in the coming weeks.
Lighter cattle have remained steady on small volumes, but as more cattle move off pasture, prices may come under slight pressure. More auction markets that closed for the summer are starting to have sales again as volumes increase.
Cow-calf pairs traded $650-$1,150, with most at $875.
Pork demand static
Despite the recent high prices for beef in the U.S., consumer demand for pork does not appear to have strengthened, Manitoba Agriculture said.
There does not seem to be an obvious reason why consumers have not switched to this lower-priced alternative. Maybe the pork industry’s advertisements should now read, “the other red meat?”
Wholesale prices for most pork primal cuts, particularly butts and ribs, declined again, slightly lowering the U.S. pork cut-out value.
As a result of the weaker-than-expected demand for pork, hog prices are falling faster than projected.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) decreased from $40.11 US per cwt. on Aug. 25 to $37.46 on Aug. 28.
On average, the week’s hog prices were eight percent lower than the week before. However, lean hog futures prices for all months increased.
