Fed cattle recover
The fed market staged a rally last week, but the climb only offset the previous week’s decline so average prices were steady with the week before.
By the end of the week, prices were in the mid $70s per hundredweight.
Offerings were steady but packer demand improved.
Considering record cattle prices in the United States, packers would have to consider Canadian prices a steal, Canfax said.
“Many in the industry also feel that the work towards a voluntary consortium to offer and sell fed cattle also played into the different attitude from packers,” Canfax said.
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Beef arrived in Mexico during the week, improving market optimism.
Alberta prices Oct. 9 were steers $71.85-$75.85 per cwt., flat rail $120-$124.20 and heifers $71.85-$77, flat rail $120.
Canfax said the Alberta program announced Oct. 9 should have little impact on prices because few details are available. Since it’s retroactive to the end of the last program, producers should market according to their plans.
Beef movement was slow early in the week but picked up by mid-week when inventory started to clear out to Mexico. This will help packers’ storage issues.
Beef movement to the U.S. from Sept. 10 to Oct. 8 was 44 million pounds, an average of 11 million lb. per week and close to the 13 million lb. per week sent in 2002.
The U.S. cattle cash and futures markets were on fire during the week.
Choice Light rose by almost $10 US from the week before and Select Light gained more than $16.
The Choice price is now 54 percent higher than it was a year ago and the Select is 40 percent higher.
It is uncertain whether these prices can be sustained as the Americans head toward their Thanksgiving when turkey and ham features will dominate the advertising.
Feeder cattle
Feeder cattle and calf prices lost ground with calves $1-$6 per cwt. lower and yearlings $5-$7 per cwt. lower than the week before.
Some sellers opted to wait to see what the markets would bring.
Offerings fell 14 percent from the week before and were down 27 percent from last year.
Slaughter cow prices were $2 per cwt. higher, but were still $28 per cwt. lower than the same time last year.
The new Alberta program may encourage buyers to be more active.
Offerings will be affected by the Thanksgiving short week but are expected to pick up after that.
Great fall weather has also given producers more time to make selling decisions, said Canfax.
In stock cow trade, bred cows were $400-$1,050, with most at $450-$650.
Bred heifers were $400-$985, with most at $450-$650. Cow-calf pairs brought $650-$1,150.
The Alberta-Saskatchewan feedlot report found 488,183 head on feed, 67 percent of last year’s total.
Placements in September were down 15 percent from last year at 318,949, but they were up from the month before, said Canfax.
Pork down
Wholesale prices for most pork primal cuts fell again last week, lowering the U.S. pork cutout value by $2 US per cwt.
However, pork prices are still higher than in late August. Hog slaughter and pork production are rising seasonally, which is depressing prices, said Manitoba Agriculture.
Market watchers are wondering why, considering record high beef prices, Americans aren’t eating more pork.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) decreased from $41.06 US per cwt. on Oct. 6 to $40.57 on Oct. 9. On average, the week’s hog prices were two percent lower than last week. The drop was deeper in Canada because of the appreciating loonie.
Manitoba slaughter plants killed 89,240 hogs two weeks ago.
Sheep and lamb
Ontario Stockyards Ltd. reported a total of 3,291 sheep and lambs and 387 goats sold last week. Good grain fed light lambs sold at steady prices, while all others were barely steady to $10 per cwt. lower. Sheep traded barely steady.
Well fed kid goats held firm, while all others sold under pressure. The strongest demand was for grain-fed lambs 55 to 65 lb.
