Japan OKs Canadian beef
Japanese scientists Oct. 31 gave their stamp of approval to imports of Canadian and American beef from cattle younger than 20 months.
Some analysts said this might result in exports resuming in December.
Chicago fed cattle futures rose on the news.
Fed cattle edge higher
Fed cattle prices were 50 cents-$1 per hundredweight higher last week.
Business picked up as the week progressed with more Alberta buyers than the previous weeks, despite the strike at Tyson’s Lakeside plant, said Canfax.
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Fed cattle movement to the United States remained solid.
Because of an issue with inspectors crossing picket lines, Lakeside did not process cattle until Oct. 27.
About 20,000 head traded, down 15 percent from the week before.
Alberta prices Oct. 27 were steers $83.20-$85.75 per cwt. and heifers $84.25-$85.80.
Canfax said the improved sales activity and a light narrowing of the Canada-U.S. basis were encouraging.
If Lakeside can increase slaughter, it should help prices.
The market is also supported by current feedlots and brisk U.S. exports.
Beef trade
Canadian cutouts mid-month were $2.25 higher with the spread between AAA and AA product at almost $11 per cwt.
U.S. cutouts last week lost $1.25-$1.50 US from the week before. However, the Choice-Select spread narrowed almost 25 cents to $14.75.
U.S. packers noted slightly better movement of beef.
Calgary carcass wholesale prices rose by $1 to $147 for delivery this week.
Feeder prices dip
The second week of the calf run had just under 101,500 head trading through Alberta auction markets.
The 22 percent increase in volume weighed down most weight groups with steer calves off $1-$2.25. The most pressure was evident in 400-500 pound steers.
Heifers 400-600 lb. were steady, while 600-800 lb. fell $1.25-$1.75.
Yearlings saw small volumes trading with 900 lb. and heavier steers up $2 and heifers 800-900 lb. and heavier $1.25-$1.50 stronger.
D1, 2 cows fell 25 cents per cwt. and butcher bulls were 75 cents lower.
Larger volumes, a softer U.S. market and strong Canadian dollar will all weigh on prices.
D1, 2 cows are expected to remain under pressure with increased volumes noted going into November.
Stock bred cows in central and northern Alberta were $500-$1,100.
Cow-calf pairs in the same regions brought $550-$950.
Hog prices slip
Ample hog supplies weighed again on prices despite a brisk slaughter rate and plans for a large kill on Oct. 29.
Good packer margins are encouraging large kills, estimated at 2.16 million for the week ending Oct. 29, down slightly from 2.19 million the week before but well up from the 2.07 million at the same time last year.
The Iowa-southern Minnesota cash price on Oct. 28 was $44 US compared to $45 on Oct. 21.
The USDA composite pork carcass cut-out value was $64.81 per cwt. Oct. 28, up from $63.81 on Oct. 21.
In Canada, Olymel announced it would cease operations at its plant in St. Hyacinthe, Que., stating that the rejection of a tentative labour contract by its workers makes the operation uneconomical.
Sheep, lambs lower
Ontario Stockyards reported 2,189 sheep and lambs and 507 goats traded Oct. 24. All classes of lambs sold at prices $5-$8 Cdn cwt. lower. Sheep and goats traded steady.
Beaver Hill Auction in Tofield, Alta., reported 670 head traded at the Oct. 20 sale, with overall good demand on all classes.
Light lambs sold steady to softer, at $120-$142 per cwt. Fat lambs fell by $5-$10 per cwt. to average $118. Cull ewes were $35-$55 and rams $40-$60.
Good young goats 70-80 lb. were $120-$129 per cwt. Dairy types were $30 lower.
Mature nannies $46-$62 and mature billies were $92-$123.
