Fed cattle edge higher
Fed market activity was up last week and prices on average were $1 per hundredweight higher on steers, while heifers were $1.30 higher, said Canfax.
There was less of a spread between the Alberta price and net prices that feedlots got on export cattle.
The number of cattle on offer was down because feedlots are current in their marketing. Trade totalled 21,500 head, down 23 percent from the week before, said Canfax.
U.S. fed cattle prices rose despite the fact that packers are losing money. They were forced to raise bids to get supply. Cattle Buyers Weekly newsletter said that it appears the supply of market-ready cattle in the fourth quarter will be tighter than expected, opening the possibility for stronger prices in October in the United States.
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Alberta prices Sept. 29 were steers $84.75-$86.95 per cwt., flat rail $142-$143.15 and heifers $84.75-$86.20, flat rail $142-$142.25.
Canfax said fed cattle supplies are not expected to be a burden, and, given the fact that feedlots are current in marketing, prices should be steady to stronger in October.
Weekly exports of fed and feeder cattle are on a solid track with another 12,000 head of slaughter steers and heifers shipped two weeks ago and nearly 10,000 feeders, said Canfax.
The uncertainty at Tyson’s Lakeside Packers due to the labour-management dispute continued to hang over the market.
Beef sees pressure
Canadian cutouts to the middle of September held fairly steady. Levels are lower than a year ago by about $5 per cwt., said Canfax.
Movement was described as cautious. The kill two weeks ago was smaller by about 4,000 head, reducing product in the pipeline.
The U.S. cutout was under some pressure, losing $1.70 US on Choice and $3.35 on Select. The lower cutout attracted buyers’ attention and movement increased by 40 percent.
The Calgary wholesale market is steady for product delivered this week with steers at $145-$148.
Feeders steady to higher
All weight groups of feeder cattle saw steady to higher prices. Alberta auction market volumes rose five percent from the week before, but were down 20 percent from a year ago. More than 10,500 head sold by internet or satellite on Sept. 23, said Canfax.
Steer calves traded steady to $2.25 higher, while heifers were steady to $3.25 stronger. There were more buyers last week on yearlings because some feedlots are refilling pens. Yearling steers were steady to $1 higher, while yearling heifers were steady.
D1, 2 cows were steady to slightly higher and butcher bulls traded steady to 50 cents lower.
Auction market volumes this month will be mostly calves with yearling numbers dwindling.
Talk of ample feed grain supplies across the Prairies will support calf prices. Stronger fed cattle averages the last two weeks should also improve buying interest.
D1, 2 cows may see pressure in October as volumes seasonally increase, said Canfax.
Stock bred cows were mostly $500-$1,000 with tops to $1,400 in central Alberta. Bred heifers in northern Alberta were $350-$900. Cow-calf pairs were mostly $550-$850 with tops to $1,040.
Hog prices steady
U.S. hog plants continued to kill at a fairly strong pace of about 400,000 per day, helping to keep hog prices steady.
Analysts believe the strong hog demand is designed to meet export demand. Packer margins continued to narrow during the week.
Chicago lean hog futures contracts mostly rose, pressured higher by the strong cash market.
The U.S. Department of Agriculture reported the Sept. 1 hog herd was 100 percent of a year ago.
The breeding and market herds were static despite two years of profits in the industry.
Some analysts speculated that expansion was being discouraged by the difficulties in getting environmental permits.
The Iowa-southern Minnesota cash price was $49.50 US per cwt. on Sept. 30, slightly down from $50 Sept. 23.
The USDA composite pork carcass cut-out value was $70.40 on Sept. 30, down from $71.05 Sept. 23.
Canadian prices are suffering from the steadily rising Canadian dollar.
Sheep stronger
Ontario Stockyards reported 1,997 sheep and lambs and 342 goats traded. All classes of lambs sold at prices $10 cwt. higher. Sheep traded $8 cwt. higher. Goats sold steady.
