Surplus hurts cattle price
Fed cattle prices in the United States and Canada fell last week as a surplus of heavy cattle weighed on the market.
Average steer weights topped 800 pounds last week, compared to a 1997 average of 752 lb.
In Western Canada, steer prices were down about $3 per hundredweight and heifers fell $1.50., said Canfax. The volume was up 20 percent over the previous week, indicating feedlots are trying to clear out heavy animals.
Prices Sept. 3 were steers $73.50-$78.50 per cwt., flat rail $127.05-$128.15, and heifers $77.35-$82.30, flat rail $133.20.
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Wholesale beef prices fell because U.S. packers are clearing inventory before the end of summer and low pork prices are causing stiff competition. Canfax expects no improvement in fed prices soon.
Cow prices fell an average of $1 per cwt. last week in step with lower hamburger prices and an abundance of pork.
Feeder cattle numbers last week jumped 34 percent from the week before, said Canfax.
Yearling trade was mostly steady with a few sales $1 per cwt. lower. Some reports came in for calves sold for mid-to-late October delivery at prices of $115-$117 per cwt. for 500-600 lb. steers. Only a few heifers were quoted.
Feeder prices were holding up despite negative news from the fed cattle market. But with fed prices falling further and U.S. feeder prices falling on the futures market, the forecast has declined, particularly given feedlot losses, a rising loonie and more cattle expected into fall.
Support will come from lower feed costs and empty pens.
A few bred cows were quoted at $500-$900. No bred heifers sales were reported. A few cow-calf pairs sold at $1,100-$1,150.
Hog prices hit twice
Canadian hog prices were hit by a double whammy – falling U.S. hog prices and a rising Canadian dollar.
Hog prices Sept. 4 in the U.S. were down $3-$4 per cwt. from the previous Friday.
A near record U.S. hog slaughter may soon cause capacity problems. Pork bellies, hams and loins have all fallen in price.
The rate of U.S. sow slaughter in August was topping 70,000 a week, the point where historical trends indicate the beginning of breeding herd liquidation.
Liquidation would point to reduced supplies and price strengthening in 1999.
However, if liquidation has begun, the impact might take longer to feel because of increases in pigs per sow production.
