Cattle prices rise
Fed steer prices rose an average of $2 per hundredweight and heifers gained $2.40 last week, said Canfax.
The volume traded through Canfax climbed to slightly more than 23,000 head, 11 percent more than the week before.
Producers appeared to be more willing sellers, with prices topping $80 per cwt. The highest prices came midweek. The set-aside program saw less information released, quoting only 90 registered bidders and 19 accepted bidders at an average daily feed cost of $1.38.
Packers appear to have stretched their inventories and some now own inventory into the second week of November. Alberta prices Oct. 20 were steers $79.25-$79.50 per cwt., flat rail $132.30-$135.50 and heifers $80, flat rail $135-$135.50.
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With the basis close to -$25, depending on the exchange rate of the day, set-aside administrators will likely change little. Look for prices to hold around the $80 mark. If packers get too long and prices start to deteriorate, then expect more cattle to head into the set-aside program, Canfax said.
More at auction
Alberta auction markets saw increased action with slightly fewer than 69,000 head trading, up 39 percent from the week before and steady with last year. Prices were mixed compared to the week before.
Steers 300-500 lb. were $1.25-$1.50 per cwt. higher and 500-600 lb. were 50 cents stronger. Steers 600-900 lb. traded steady to 50 cents lower, while demand for steers 900 lb. and heavier continued, up $3.50.
Heifers 300-600 lb. fell 50-75 cents and those at 600-700 lb. were 75 cents higher. Demand increased for heavy heifer calves and yearling heifers, with prices rising $1.50-$3.
D1, 2 cows held steady and butcher bulls were 50 cents lower.
With the snowfall, cow-calf producers will be pushing to get calves weaned. Expect volumes to increase significantly in the coming weeks with calves making up most of the sales.
Most of the yearling run is complete for this fall. Steady to stronger fed prices could help stabilize prices as volumes increase.
Stock bred cow volumes picked up with all areas of Alberta reporting prices of $300-$550 on medium quality and $550-$910 on good quality. Bred heifers in northern Alberta brought between $340-$790, while in southern Alberta they were $785-$850 in light trade. Cow-calf pairs in central and northern Alberta were $350-$860.
Canadian boxed beef values gained back what they lost the previous week. The AAA light cutout was up more than $6 per cwt. while the other cutouts rose $3-$4 per cwt. Trim rose 12 percent on the 50 percent and seven percent on the 85 percent.
U.S. cutouts rose about $4.50 US but the Choice is 23 percent lower than the same week last year when U.S. cutouts were near their record high.
The Calgary market for this week is $138-$145 Cdn per cwt. Higher cutouts were largely driven by the U.S. market because supplies of domestic product look more than adequate.
Cattle on feed report
A United States Department of Agriculture report shows total cattle on feed up three percent at 10.5 million head. Of that, steers and steer calves accounted for 6.46 million, up four percent from last year. Heifers accounted for 3.96 million, up one percent from 2003.
Placements were down four percent from 2003 at 2.37 million head, but eight percent above 2002.
Marketings totalled 1.8 million head, down 11 percent from 2003. Marketings in September were the second lowest since collection of data began in 1996.
Hog prices up in U.S.
The U.S. wholesale cut-out price for pork fell by about $3.50 US per cwt. to $71.63 on Oct. 21, said Manitoba Agriculture.
It appears packers needed to move the product because they were willing to pay more for live hogs.
The weekly average Iowa-Minnesota daily direct hog price (Thursday to Thursday, 51-52 percent lean carcass converted to live weight) was about 2.6 percent higher at $53.88 per cwt. on Oct. 20.
Estimated prices for hogs in Manitoba were five percent lower with the stronger loonie accounting for about one percentage point of the loss, said Manitoba Agriculture. The average slaughter (all-in) price on a dressed weight basis paid for all hogs was estimated at $171 Cdn per 100 kilograms compared to the previous week’s estimate of $180.18.
On Oct. 21, the Manitoba Iowa-Minnesota equivalent price (f.o.b. Iowa, Index 100, anti-dump duty not included) was $167.74 per cwt., up about one percent from the week before.
The general duty (cash or bond) rate of 14.06 percent would apply to the value of the exported hog, less freight and border fees. The value of the duty is estimated at $22 per slaughter hog.
Manitoba producers appear to be holding back weanling pigs to see what the market will offer. In Manitoba, the spot price for five kg weanling pigs was up 15 percent, ranging from $38-$49.28 per pig for the week ending Oct. 15, compared to $37.78-$42.82 a pig for the previous week. The spot price for 23 kg weanling pigs rose 10 percent to $38-$49.28 per pig for the week ending Oct. 15.
The top bids for the spot prices are higher than the top bids for contract prices for this period. These bids include the duty.
Lambs steady
Ontario Stockyards said 1,887 sheep and lambs and 910 goats traded. All classes of lamb saw steady prices. Good sheep sold steady, while plainer types were higher than the week before.
Kid goats traded $5-$10 lower. All others were steady.
