Fed cattle rise
Fed cattle prices saw their first significant jump in months, gaining about $6.50 per hundredweight live over the week. Prices were highest at the end of the week.
Tighter offerings over the past few weeks have reduced the supply that packers own.
Producers enjoyed increased bargaining power and used it to help push prices higher, Canfax said.
Volume traded was only about 13,000 head.
Alberta prices Oct. 16 were steers $78.75-$81, flat rail $129-$134.50 and heifers flat rail $133.25.
Canadian boxed beef prices are generally higher, but still lag the rocketing prices seen in the United States.
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Movement of boneless beef to the U.S. has ramped up, with volumes from Sept. 10 to Oct.15 at 62 million pounds.
Trade to Mexico totaled 1.1 million lb. in its first week.
U.S. market soars
The U.S. market posted record high prices on cut-out values. Prices jumped a remarkable $33 US per cwt. on Choice Light and $39 on Select Light.
This put the Choice at more than $200 per cwt. compared to $110 the same week last year.
Most believe U.S. beef prices hit their peak during the week and will start to cool.
Canfax said that as Canadian feedlots start to organize their sales volumes through the new Disciplined Marketing Initiative this week, more cattle will be offered but with greater market strength.
Sellers will want prices better than the low $80s.
Although there are still plenty of cattle to trade over the next month, if marketings are handled in an appropriate fashion, prices will move higher.
Carcass weights are at a record high and will stay that way as the remaining cattle in the fourth quarter are cleared.
Feeder market falls
Slightly more than 48,000 head traded at Alberta feeder markets last week, a drop of 17 percent from the week before and 38 percent below the same week last year.
Canfax said producers may have been holding out for stronger prices resulting from the latest Alberta fed cattle program.
Prices were generally higher, reflecting the program and smaller marketings, with the exception of 300-400 lb. steers trading 50 cents per cwt. lower than the week before.
Steers 400-700 lb. traded 75 cents to $2.50 per cwt. higher, but still $11- $11.50 per cwt. lower than a year ago.
Steers heavier than 700 lb. traded $2-$4.25 stronger, but down $8-$9 per cwt. from last year.
Feeder heifers 300-700 lb. were 50 cents to $3.50 higher and those heavier than 700 lb. were $3.50-$4.25 stronger.
Slaughter cow prices were $1.25 lower than the week before.
The stronger prices last week might entice larger marketings but that could lower prices again.
Volumes remain below last year and the mix is shifting from a majority of yearlings to a majority of calves.
Also, lingering uncertainty regarding the border opening to live cattle under 30 months of age may add more pressure to certain classes of cattle, Canfax said.
In stock trade, bred cows were $500-$700 with most at $600-$650.
Bred heifers were $750-$950. Cow-calf pairs traded between $700-$900 on light trade.
Pork demand up
Demand for pork improved in the U.S. last week, indicating that some consumers might be switching away from high priced beef.
Wholesale prices for all pork primal cuts, except bellies, climbed, raising the U.S. pork cutout value by more than $3 US per cwt. over the previous week. Packers were encouraged to pay more for hogs as the week progressed.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) rose from $39.99 per cwt. on Oct. 13 to $41.03 on Oct. 16.
On average, the week’s hog price was close to the previous week’s level in the U.S. but lower in Canada due to the higher loonie.
The rapidly appreciating Canadian dollar has not only reduced Canadian pig prices, most of which are based on U.S. market prices, but has also hurt the competitiveness of Canadian pork in the U.S. and other countries.
It is estimated that the higher dollar compared to last year will lower farm cash receipts from pig production in 2003 by about $100 million, said Manitoba Agriculture.
However, net income from pig production will not be affected to the same extent because of lower feed costs, partly due to the stronger Canadian dollar.
Quality lambs steady
At Ontario Stockyards Inc., 1,656 sheep and lambs and 314 goats traded. Good grain-fed light lambs sold at steady prices, while plainer and unfinished types were under pressure.
Heavy lambs traded barely steady. Sheep prices fell by $5 to $7.
Goats held firm.
