Fed cattle higher
With the breakthrough in the labour dispute at Tyson’s, the Lakeside plant at Brooks, Alta., re-entered the market midweek, helping to push fed cattle prices higher. The week’s averages on steers and heifers rose by $1.50 per hundredweight, said Canfax.
Better prices and a more active packer demand drew more cattle out.
U.S. packers appeared to have adequate Canadian supplies and bid less aggressively but live exports were expected to be steady.
The volume traded was nearly 28,500 head, up 41 percent from the week before. Alberta prices Nov. 3 were steers $87.25-$88.90 per cwt., flat rail $147-$148.35 and heifers $87-$87.50, flat rail $148.
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The Lakeside plant had been running a single shift but now that the agreement is ratified, a double shift could begin this week. However all packers will have a short week due to Remembrance Day.
Feedlots are current in their market and volume for sale is expected to be smaller through November, which should support prices, said Canfax.
Beef edged higher
As expected, Canadian cutouts moved higher in late October due to the reduced production caused by the strike at Lakeside.
Canfax said cutouts gained $2.50-$3 over the previous week, or two percent. The AAA cutout was under the equivalent Choice by $4 while the AA fared better with the U.S. Select cutout at a $1 premium.
If Lakeside gets back to a double shift quickly, that will weaken cutouts in Canada in the short term. The U.S. cutout lost a bit of ground last week on Choice while Select gained nearly $1.
Calgary wholesale prices for delivery this week are steady to $1 higher, with handyweight carcasses in a range of $147-$148.
Lots of calves
Feeder cattle trade was active at nearly 98,000 head, down four percent from the week before but up three percent from a year ago, said Canfax.
The price spread between steer and heifer calves widened a bit as steers held fully steady to 50 cents higher on average and heifers lost about 50 cents.
Sales varied depending on day, location and quality. Top quality calves traded well but second-cut quality showed weakness. This was especially true on the heifer calves.
Yearling prices averaged $2-$3 per cwt. higher. Buyer interest on yearlings was strong with Alberta and U.S. forces pushing the envelope. Feeder exports last week surpassed 10,000 head.
Slaughter cow and bull prices gained $3-$3.50 as Lakeside stepped back into the cull market.
With feedlots filling with calves, downward pressure might build on calf prices later in the month, said Canfax.
Although there have been some good-sized runs, this year’s calf crop, the largest in history, will take some time to get through. Quality will become more of a factor as time wears on. The steer-heifer spread will also widen, but yearlings should hold their ground. Their numbers are tightening and feedlots are still focused on a strong first quarter fed market.
In stock trade, bred cows were $500-$1,000 with tops to $1,200 while bred heifers were $500-$1,100, tops to $1,400. Cow-calf pairs brought $700-$1,010.
Hogs strengthen
American cash hog prices edged higher last week.
Packers continued to enjoy profits that encouraged strong slaughter rates, estimated at 2.14 million, down slightly from the week before.
The Iowa-southern Minnesota live cash price for hogs delivered to plants on Nov. 4 was $45 US compared to $44 US on Oct. 28.
The U.S. Department of Agriculture composite pork carcass cut-out value was $64.66 on Nov. 4, slightly lower than the $64.81 per cwt. posted Oct. 28.
Western sheep lower
Ontario Stockyards reported 2,712 sheep and lambs and 229 goats traded. Light lambs sold at steady prices, while heavy lambs traded barely steady. Sheep and goats held firm.
Beaver Hill Auction in Tofield, Alta., reported 605 head sold at its Nov. 3 sale.All classes of sheep and goats sold under pressure because feedlots are filling up.
Good feeder lambs were down, selling at $112-$130 per hundredweight. Fat lambs were $110-$112. Cull ewes and rams sold at $35-$55 per cwt., while replacement ewes were $68.
Good goats, 70-80 lb. were $118-$123 per cwt. Light kids under 50 lb. sold under extreme pressure at $80-$105 per cwt.
Good mature nannies were $45-$79, while thin nannies were discounted to about $30. Mature billies were $90-$114 per cwt.
