Slaughter cattle prices rise
With the slaughter rate finally climbing higher than at this time last year, fed cattle prices saw good strength.
Steers climbed $11.50 per hundredweight and heifers were up $7.
Canfax said the kill for the last week of August was huge at 72,631 head, 8.5 percent larger than the previous week and the same amount higher than the same week in 2002.
Prices gained in momentum all through the week and packer bids finally caught up and overtook the speculative bid in most cases. Some non-packer interests were still buying cattle, mostly the lighter end of the slaughter mix.
Read Also
Canola used in only quarter of Canadian biofuel
Less than one-quarter of the biodiesel and renewable diesel used in Canada in 2024 was made from canola oil feedstock
From Sept. 3 on, prices were generally more than $70 per cwt.
The volume was almost double the week before, at 16,000 head. With tighter supplies ahead, packers want live inventory.
Alberta producers were willing sellers at the 25 percent limit of inventory covered under the provincial assistance program. Saskatchewan producers were waiting to see what their government would offer.
Alberta prices Sept. 4 were steers $70-$73.15 per cwt., flat rail $116.15-$119.30 and heifers $65-$74, flat rail $116.15.
Canfax said domestic beef movement this summer was superb. The challenge will be to keep the ball rolling through the autumn. Fall typically sees slower beef sales at the retail level. Lower retail prices have been a key criteria in the increased consumer buying. Prices are expected to climb as beef starts to flow to the U.S.
The American market last week was exceptionally strong for fed cattle with cash cattle prices surging to $85 US.
While working out details continued to hold back Canadian beef exports last week, the market was proceeding on the expectation that the border would be open soon.
Feeder volumes down
Feeder cattle volume increased with slightly more than 16,000 head through Alberta auction markets, up eight percent from the week before. But that was down 73 percent from the same week last year, said Canfax.
Prices on all weight ranges rose from the week before.
Feeder steers traded $1.75-$4.50 per cwt. higher, with yearlings trading $3.75 higher. While that was $7.25-$14.50 per cwt. lower than last year, Canfax said most feel this is a strong market considering the difficulties of the summer.
Feeder heifers gained momentum this week, trading $2-$4 higher.
D1, 2 cows traded slightly stronger on very light numbers.
With fed cattle trade increasing and net returns to producers looking above a dollar on the Alberta Competitive Market Adjustment Program, feeder cattle trade is expected to remain steady to stronger in the following weeks, especially in the yearlings. Volume is also expected to increase, but maybe not as much as in previous years due to more producers choosing to retain ownership this year.
Bred cows traded averaged $450 on very light trade. Cow-calf pairs ranged at $500-$1,150 with most at $830.
Beef imports are declining. From May 10 to Aug. 16, weekly imports averaged 5,135 tonnes compared to 4,345 tonnes in 2002, an 18 percent increase.
However, in four of the last five weeks, imports fell heavily, reflecting the federal government’s refusal to grant supplemental tariff rate quota imports and the low prices in Canada.
Hog prices slip
While hog prices in the U.S. rose, prices in Canada declined due to the stronger Canadian dollar and the seasonally larger supply of hogs, said Manitoba Agriculture.
U.S. packers had excess inventories as the week began, forcing them to lower prices on all retail cuts. However, the weekly carcass cut-out value ended the week slightly higher at $59.21 US per cwt. by Sept. 4, compared to $58.90 Aug. 29.
U.S. slaughter was estimated to be 1.17 million head compared to 1.49 million the week before and 1.2 million head a year ago.
The Labour Day holiday contributed to lower weekly hog slaughter numbers.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) increased from $37.71 per cwt. on Sept. 2, to $38.40 on Sept. 4.
The week’s average hog price in the U.S. was about two percent higher than last week.
The higher U.S. prices were attributed to there being a few less hogs at a time when better profits on pork sales had plants anxious to keep production high.
The lean hog futures prices for all months also increased.
Sheep trade steady
At Ontario Stockyards Inc., 2,332 sheep and lambs and 77 goats traded.
Light lambs sold barely steady while all other lambs and quality sheep traded steady to higher.
Plainer sheep and goats were steady.
