Feds head south
The strike at the Tyson Lakeside plant in Brooks, Alta., slowed domestic trade, forcing more fed cattle to the United States.
Trade with packers in Alberta saw fed steers hold steady and heifers gain $1 per hundredweight based on quality, Canfax said.
Most of the trade into the U.S. was done at levels 50 cents-$1 per cwt. lower than the week before, partly because of the stronger Canadian dollar, said Canfax.
Volume traded rose 52 percent to 23,700 head.
Feedlots continue to be considered current in their marketings.
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Alberta prices Oct. 20 were steers $84.75-$86.45 per cwt., flat rail $143-$143.90 and heifers $83.25-$85.80, flat rail $142.
The disruptions at Brooks dropped Alberta’s weekly federal slaughter to 27,000, down about 20,000 from before the strike.
The price spread between the U.S. and Western Canada favours shipping south. Local packers will need to be competitive to get the numbers they need to run their plants, Canfax said.
U.S. beef rises
Canadian cutouts held steady through early October but lost more ground against a strengthening U.S. cutout, said Canfax.
Beef is moving fairly well but is not able to generate higher prices. Small kills should pressure beef prices higher heading into November.
U.S. cutouts gained another $4 US on Choice last week and $2.60 on Select, widening the spread to $15 per cwt.
Smaller kills in the U.S. have also supported the cutout.
Calgary carcass wholesale prices for delivery this week are steady to $2 lower at $146 Cdn on handyweight steers.
Calf run
The fall calf run has finally materialized with about 83,000 head trading, up 33 percent from the week before and 20 percent larger than the same week last year, said Canfax.
Despite the increase in volumes, prices held steady on most weight groups.
A bit more interest was noted on lighter calves. Steers 300-600 pounds were $1-$2.75 per cwt. higher, while heifers 300-500 lb. rose $2.75-$3.25.
Steers 600-800 lb. showed slight pressure, falling 50-75 cents, but heifers 600-800 lb. were 75 cents-$1.75 higher.
Yearlings on lighter volume were steady to slightly higher for steers and heifers.
D1, 2 cows were under pressure again, falling 50 cents.
There were indications that the steer-heifer spread may begin widening in Alberta to take into account additional export cost for heifers.
This situation has already developed in Ontario and Manitoba where calf volumes have been higher for the last two weeks.
Steers are anticipated to trade steady to slightly softer this week with larger volumes noted and a softer U.S. market.
Slaughter cows are expected to struggle.
Stock bred cows and heifers were mainly $500-$900 with tops to $1,100 on bred cows and $1,060 on bred heifers.
Cow-calf pairs traded between $500-$1,075.
On feed
The U.S. Department of Agriculture cattle-on-feed report added a little downward pressure to cattle going to market later in the year. There were 10.482 million head in American feedlots, the same as a year ago. Analysts had expected the number to be down about one percent. September placements were down one percent from a year ago. Analysts had expected a drop of four percent.
Hog prices weaken
American packers had access to more than enough hogs last week, causing prices to fall.
The lower hog prices allowed packers to maintain profit margins despite lower pork prices.
The Iowa-southern Minnesota cash price on Oct. 21 was $45 US, compared to $48.50 on Oct. 14.
The USDA composite pork carcass cut-out value was $63.81 Oct. 21, down from $69.13 on Oct.14.
Ron Plain and Glenn Grimes of the University of Missouri noted that American pork exports continue at a record pace, up more than 25 percent from last year.
Lambs fall hard
Ontario Stockyards Inc. reported 2,461 sheep and lambs and 423 goats traded. Light lambs sold at prices $15-$20 cwt. lower, while heavy lambs were $10-$15 cwt. lower. Sheep traded $5-$10 cwt. higher. Goats sold steady.
