Fed cattle prices slacken
Fed cattle prices started the week steady but fell due to weak demand, said Canfax.
The weekly average was down $1.50-$2 per hundredweight from the previous week. Bids were particularly weak at the end of the week, with Oct. 2 bids $4-$5 per cwt. lower than the day before.
Slightly more than 16,000 head were offered, a moderate offering for this time of year but more than enough for domestic kill only, Canfax said.
Packers extended their live inventory to two to three weeks out. Cattle offered were heavy and will start showing up in the kill later this month.
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Most of the cattle were competitive bid or set-aside cattle from Alberta’s August BSE program and had been set aside for 60 days.
Alberta prices Oct. 2 were steers $61.50-$68 per cwt., flat rail $104-$109 and heifers $65.25-$68, flat rail $112.
Canfax said Canada shipped 31.8 million pounds of beef to the United States from Sept. 10 to Oct. 2.
Packers in the U.S. and Canada have slowed kills as inventory of Select (in the U.S.) and AA (in Canada) builds.
In the U.S., packers pulled forward so many cattle that slaughter weights are down. There are not enough Choice animals to fill orders.
American packer profit margins have slipped into the red, but they are expected to keep slaughter low to allow feedlot inventories to rebuild.
The reopening of the Mexican market to some Canadian beef will provide an opportunity for different products to move again, like offal.
Canfax sees little hope for improved fed cattle prices given that packers own a couple of weeks of supply, the reduced slaughter during the Thanksgiving holiday, and the heavy supply of set-aside cattle. The slow pace of slaughter will push cattle back even further.
Hopes for decreased supply and higher prices in November and December are fading fast.
Feeder volumes to rise
Alberta’s feeder auction market volume increased nine percent over the week before, with just under 68,000 head trading.
That was 10 percent below last year due to warmer weather and producers concentrating on finishing harvesting.
Feeder steer prices slipped with all weight ranges down $2-$3.50 per cwt. from the week before, with the exception of 800-900 lb. animals trading 50 cents lower.
Feeder heifers fell $1.25-$4.75 per cwt. These feeder prices are $6.25-$11.75 lower than a year ago.
D1, 2 cows traded $1.50 per cwt. lower with more volume than seen in previous weeks.
Volumes will seasonally increase into mid-October and November, keeping pressure on prices.
Bred cows ranged between $400-$750 with most at $550-$575. Bred heifers were $850-$950. Cow-calf pairs were $700-$975 with most at $750-$850.
Pork prices also drop
Falling wholesale pork prices for all primal cuts, except ribs and bellies, reduced the U.S. pork cutout value by $3 US per cwt., bringing it down to the level of a month ago.
The seasonal increase in hog supplies pressured hog prices lower, Manitoba Agriculture said.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) decreased from $42.23 per cwt. on Sept. 29 to $40.88 Oct. 2. On average, the week’s hog price was seven to eight percent lower than the week before.
Manitoba slaughter increased as the Springhill Farms plant in Neepawa was expected to kill 10,000 head.
Lamb higher
Ontario Stockyards Inc. saw 1,864 sheep and lambs and 283 goats trade.
All classes of lambs sold steady to higher, while sheep and goats traded at steady prices.
