Fed cattle prices rise
Fed cattle sales started slow but picked up midweek, sending prices $1 per hundredweight higher than the week before, said Canfax.
Two of the large packers bid actively. The offering was not large for this time of year, but the volume was up 38 percent from the week before at 28,000 head as feedlots chased the stronger prices.
Some producers in the wettest areas say carcass grades are suffering due to the mud.
Set-aside cattle sold for future delivery far easier than in previous weeks, said Canfax.
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One plant appeared fairly short bought and was lifting cattle the day after they traded.
Alberta prices June 23 saw steers at $79.75-$82.25 per cwt., flat rail $133.75-$135.30 and heifers $79.75-$82.10, flat rail $131.25-$134.50.
Canfax said the July 1 holiday will reduce trade and slaughter during the week. Feedlots are current in their offerings, even considering the set-aside cattle. Feedlots will try to keep the Canada-U.S. basis in the $20-$21under area.
Large beef supply
Canadian cutouts fell two weeks ago in line with the trend in U.S. cutouts. The AAA value was $3.60 per cwt. lower while the AA was $1 lower.
They were expected to fall again last week. U.S. cutouts lost $4.25 on Choice and $2.50 on Select compared to the week before.
In Canada, more retail featuring in July may move more product and ease the heavy supply situation. Recent smaller kills and the July 1 holiday shortened week will mean less product in the pipeline. Calgary wholesale beef for delivery this week is $141-$142 on handyweight steers.
Feeder supply tight
A reduced offering and strong demand drove feeder prices $1-$4 higher last week. Volumes through Alberta auction markets were about 14,600 head, down 27 percent from the week before but 80 percent larger than last year.
Steers 400-800 lb. rose $1-$2 as grass cattle volumes dwindled.
Heifers 400-800 lb. rose $1-$3.
The big news was stronger prices for heavy feeders near the end of the week. Feedlots appear eager to fill pens and so 800-900 lb. and heavier steers gained $3.50-$3.75, while 800-900 lb. and heavier heifers rose $1.25-$3.
D1, 2 cows and butcher bulls traded steady to slightly lower.
Canfax said the trend is expected to continue in the short term. Volumes will continue to seasonally decrease, but the number of buyers is expected to remain strong as most feedlots have been above breakevens and are anxious to fill pens. D1, 2 cows are anticipated to trade steady at $20-$25 a cwt. for the summer.
Stock bred cows and heifers on limited volumes in northern Alberta traded at $300-$700. Cow-calf pairs were mostly $500-$1,280, depending on quality.
Hogs fall again
Cash hog prices in the United States last week fell, with the Iowa, southern Minnesota price dropping to $49 US per cwt. delivered to plant June 24, down from $51 on June 17.
U.S. hog plants slowed slaughter during the week to try to limit supplies and drive up pork prices.
The composite pork carcass cutout value ended the week at $64.90 per cwt., down $3.44 from the week
before.
Market watchers noted high temperatures in the U.S. midwest this week might reduce deliveries, but they didn’t expect it to force hog prices higher.
Chicago lean hog futures slid lower last week, but the U.S. Department of Agriculture hogs and pigs report June 24 could support the futures this week because it showed the U.S. herd is expanding more slowly than expected.
Last week’s pork belly cold storage report showed total pork stocks at 513.3 million lb., well under estimates of 545 million to 550 million lb. But that is still historically large and increasing pork production could provide more product than the market can handle.
Lambs rise
Ontario Stockyards reported 1,419 sheep and lambs and 173 goats traded last week. All classes of good lambs sold $10-$15 Cdn per cwt. higher, while all others sold steady. Sheep and goats saw steady prices.
