Fed prices dip
Fed cattle price averages last week were down 25 cents per hundredweight on steers and 75 cents on heifers.
The week opened with significantly lower bids but producers resisted for the most part until midweek, said Canfax.
Volumes were down by eight percent, not surprising considering the holiday-shortened week. U.S. buyer interest was consistent with good sales.
Alberta prices Sept. 8 were steers $83 per cwt. live, $135.80-$137.30 flat rail and heifers $136 flat.
Although weaker prices in Alberta and steady prices in the United States would lead one to expect a further widening in the week’s basis, the strength in the Canadian dollar kept the price spread about the same, at $14 under.
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U.S. prices are expected to be about steady, helping to keep Alberta prices stable for the next couple of weeks.
Alberta feedlots are fairly current in their marketings, which should pay off in bargaining position this fall.
Beef mostly steady
Cutouts in the U.S. last week were steady on the Choice and $1 US lower on the Select.
Movement was good for the short week with nearly as many loads trading as the previous full week.
Wholesale prices in Calgary on handyweight steer carcasses were mostly steady at $143-$144 for delivery this week.
Supplies continue to build of rib and loin cuts.
A larger cow kill has meant more cow beef products and boneless beef in the pipeline and lower prices have been necessary to move the product.
Seasonally, cutouts should start to improve into the fall but the impact of the Katrina hurricane on the U.S. economy and beef demand is still unknown.
Yearling run slows
Alberta auction market volumes were smaller again last week with a little more than over 36,500 head trading.
This was down 11 percent from the previous week and may be an indication that some locations are nearing the end of the yearling run, said Canfax.
Volumes were seven percent up from last year.
All feeders were weaker last week.
Steers 500-700 lb. fell $1.50-$1.75, while heifers of the same weight group fell $1.50-$2.
Steers 700-900 lb. and heavier fell 50-75 cents, while heifers were steady to $1.50 lower.
D1, 2 cows stabilized, but butcher bulls were $2.50 lower.
Larger volumes of calves may not move for another couple of weeks, said Canfax.
Buyer interest in slaughter cows is expected to remain strong for the short term.
Stock bred cattle in northern Alberta brought $450-$675.
Cow-calf pairs in central and southern Alberta traded at $700-$1,550.
Hog prices down
Falling pork prices and a large supply of hogs caused U.S. cash hog prices to fall last week although prices stabilized at week’s end with expectation of a large kill on Sept. 10.
Hog marketing normally picks up this time of year but the market was also dealing with hogs that were held back by the summer heat wave.
The Chicago lean hogs futures contracts rose, supported by the discount of futures to the CME lean hog index.
Also, the fact that packers were enjoying strong margins made traders think the kill rate would be strong this week, encouraging good hog demand.
The Iowa-southern Minnesota cash price Sept. 8 was $47.50 US, down from $51.50 Sept. 2.
The USDA composite pork carcass cut-out value Sept. 8 was $71.03, down from $73.59 Sept. 2.
Sheep steady
Ontario Stockyards reported 2,152 sheep and lambs and 357 goats traded last week. All classes of sheep, lambs and goats traded on an extremely good demand at steady prices.
