Fed prices fall
Fed cattle prices fell all week.
Marketings were light, just 7,000 head, because few were willing to sell at the prices offered, said Canfax.
Packers appeared to have adequate supplies because of previously purchased or arranged cattle and cattle from other provinces.
Carcass weights are increasing as backed-up cattle slowly make their way through the queue. Now, some short-fed cattle with poor yields are also appearing in the mix.
Alberta prices Nov. 20 were steers $75-$76.35 per hundredweight, flat rail $128 and heifers $74.25.
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Even at the depressed prices, Canfax recommended selling to reduce overweight supplies.
Otherwise, discounts for overweight cattle and those older than 30 months will creep higher.
Canadian beef markets slowed as Christmas turkey season looms.
The Montreal wholesale price is down $3-$5 per cwt. in a range of $145-$148 while Calgary fell $3-$5 to $136-$139.
With kills over 60,000 for the past couple weeks, there’s plenty of production in the pipeline. Beef exports to the United States are holding steady at last year’s levels and exports to Mexico are better than last year.
The U.S. cutout was mixed with Choice Light losing $1.25 US and Select gaining $1.25. Movement has slowed in the U.S. although kills have also been much smaller.
Auctions keep steady
For the second week in a row, Alberta auction market volume was above a year ago, up 10 percent. A total of 83,000 head traded, down 14 percent from the week before.
Feeder prices fell. Steer calves lighter than 700 lb. traded $4.75-$6 per cwt. lower than the previous week and $3.50-$9.75 lower than a year ago. Feeder steers 700-900 lb. and heavier were down $2.75-$3.75 than the previous week and $9.50-$11 lower than 2002.
Heifer calves less than 600 lb. lost $3-$4.75 and were down $5-$8 from last year. Feeder heifers 600-900 lb. and over traded down $1-$4 from the week before and $10-$12 from last year.
D1, 2 and D3 cows were down 50 cents to $1.75, most likely due to the anticipation of a federal cull cow and bull program, said Canfax.
Feeder volumes are expected to decrease and stay below year-ago volumes for the rest of the year, due to lower prices seen this week and many producers retaining ownership.
Prices may continue to soften and the fancy-plain spread will widen. D1, 2 and D3 cows prices will come under pressure as the federal cull cow program is attached to slaughter.
Bred cows were $400-$1,140 with lower quality cows bringing $400-$700 and quality animals at $700-$1,140. Bred heifers were $400-$1,300 with quality heifers bringing $950-$1,300 in the south. Cow-calf pairs in the north brought $550-$950 and in central Alberta brought $900-$1,025 on light trade.
Cattle placed for spring
The U.S. October cattle-on-feed report showed feedlots sold more cattle than expected during the month and replaced them with light cattle that won’t hit the market until next spring. USDA reported Nov. 1 cattle on feed at 103 percent of last year, equal to analysts’ expectations.
October marketings were 94 percent of a year ago, compared with the 90.4 average of trade estimates. October placements were 116 percent of last year, compared with the 113.7 percent average trade estimate.
The report was expected to support December futures prices and weaken prices for next spring.
Hog prices dip
The U.S. pork cutout value declined again, but packers kept hog prices fairly steady all week.
Wholesale prices for U.S. Thanksgiving hams fell. Hog slaughter is still above expectations, leading to lower than anticipated hog prices.
However the demand for hogs is relatively strong and the week’s prices were almost 30 percent above the same week in 2002 and slightly higher than the comparable week in 2001, despite smaller weekly slaughter for those two years, said Manitoba Agriculture.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) increased from $37.27 US per cwt. on Nov. 17 to $37.83 on Nov. 20.
However, on average, the week’s hog prices were down by one percent from the previous week.
The weaker U.S. hog market and stronger Canadian dollar combined to drop Manitoba hog prices by about two percent from the week before.
Sheep, goats steady
Ontario Stockyards Inc. reported 3,897 sheep and lambs and 276 goats sold.
All classes of sheep, lambs and goats sold at steady prices, with a fancy lot of 30 new crops (62 lb. average) selling for $215 per cwt.
