Fed supplies tighten
For the week, fed steer prices were 75 cents per hundredweight higher
and heifers were up $1.75.
Prices were under some pressure Sept. 26, reflecting a weaker American
market due to overweight cattle and a lower futures market. Also, the
Canadian dollar strengthened.
Buyers were mostly from the West, Canfax said.
The volume totalled slightly less than 17,000 head, 14 percent less
than the previous week.
Alberta prices Sept. 26 were steers $96 per cwt., flat rail
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$158.50-$159 and heifers $95.50-$96.
As the Canadian Thanksgiving weekend approaches and demand for turkey
and ham increases, beef sales have become a bit sluggish, Canfax said.
The Calgary wholesale beef price for this week is $156 per cwt. on
handyweight carcasses and $149 on heavy carcasses. Montreal prices are
up $2-$3 to $161-$162 per cwt.
Fed supplies seem to be tightening, which should support the market.
However, this will be offset by recent pressure on the futures and the
lower U.S. cash market, resulting in steady prices in Canada this week.
Feeder prices stronger
Feeder steers and heifers were mostly $1-$2 per cwt. higher in active
bidding, Canfax said.
Western buyers continue to face strong competition from the U.S. and
eastern Canada.
Slaughter cows traded 50 cents per cwt. higher.
Typically, fall feeder prices are lower, but the increased interest in
feeders this year seems to be deviating from history.
While high feed costs are still a negative factor, strong interest
shown by American and eastern Canadian buyers is supporting prices.
In stock cow trade, a few cow-calf pairs traded at $900-$1,100. Bred
cows traded at $650-$950 with the bulk at $800-$950. Bred heifers were
$675-$1,020, the bulk at $800-$1,050.
Hog prices strengthen
Hog prices strengthened again, although U.S. hog slaughter again topped
two million head for the week.
Slaughter numbers were down a little from the previous week.
Higher wholesale prices for butts, picnics and bellies raised the pork
cut-out value and packers increased their bids by the end of the week.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent,
lean carcass converted to live weight) closed Sept. 26 at $33.22 per
cwt.
On average, the week’s hog price was about six percent higher than the
week before.
Manitoba Agriculture said prices, while much improved, are still not
profitable for many producers. USDA’s break-even price estimate for
September was $37 per cwt.
While hog carcass weights in the U.S. usually climb in late summer,
this year weights declined slightly during the past month, mainly due
to some producers shipping hogs earlier in response to higher feed
costs and projected lower hog prices in the fourth quarter.
Carcass weights are now about
two lb. lower than a year ago. Up to September, weights had been above
year-earlier levels, which helped increase pork production this year.
