Fed cattle rise
A strong feeder market last week saw steers and heifers 700-900 pounds and heavier rise $1-$5 per hundredweight, and steers and heifers 300-700 lb. up 50 cents-$2.75, said Canfax.
Packer buying was good with lifting dates running fairly close to purchase date.
Total volume traded was about 24,000 head, up eight percent from the week before.
Carcass weights are the same as last year and the five-year average levels, confirming that feedlots are current in their marketing, said Canfax.
Few cattle are being exported.
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Alberta prices June 8 were steers $86.65-$87 per cwt., flat rail $140.50-$143.95 and heifers $86.85-$87, flat rail $140.50.
The Canada-U.S. basis was expected to widen a bit due to the weaker loonie and stronger U.S. market, but even at $7 under, it was tight from an historic perspective.
There was talk that packers might reduce slaughter.
Beef price rises
Canadian cutouts gained ground partly due to the recent weakness in the loonie but also because middle meat supplies are tight and in demand. The Canadian kill reached 70,000 head two weeks ago for only the second time this year. The pace was expected to be similar last week.
Retail demand is considered good. The Calgary market for delivery this week is $1-$2 lower in a range of $144-$146.
The Choice cutout last week gained nearly $3 US while the Select picked up 50 cents. The Choice-Select spread widened to more than $23. This compares to a $7 spread at this time last year. High grading cattle can bring $185 head or more over Select given this level of price spread.
Feeders strong
A strong feeder market and generally favourable weather conditions saw quality grass cattle in high demand. Heavy feeders saw a hefty price increase with feedlots looking to restock empty pen space, said Canfax.
Light steers 300-400 lb. rose $2.25 Cdn and steers 400-500 lb. fell 75 cents. Heifers 300-500 lb. rose $1.25-$3. Steers 500-800 lb. rose 50 cents-$1 and heifers 500-800 lb. climbed $2.50-$3.75.
Steers 800-900 lb. and heavier rose $2.50-$5 and heavy heifers were up $3.50-$3.75.
Alberta auction market volumes rose one percent from the week before and were up 35 percent from a year ago.
Year-to-date, Alberta auction market volumes are up seven percent, at 769,419 head.
D1, 2 cows fell $1.25 and butcher bulls were down $1.
Expect declining volumes but steady demand, so prices should be good for quality grass cattle and heavier feeders.
There were 3,472 feeder cattle exported to the United States for the week ending June 3, up 48 percent from the week before.
Medium quality bred stock heifers in northern Alberta in light trade were at $550-$990. Bred cows in central and northern Alberta traded higher at $850-$1,250, with plain types at $450-$800. Cow-calf pairs traded slightly higher at $1,050-$1,450 and plain types $600-$1,000.
Hogs shoot higher
Tight supplies of market-ready hogs forced U.S. packers to bid higher last week. Supplies are tight because of hot weather and breeding problems last year.
Packers’ margins were in the red and they were expected to respond by cutting working hours this week to try to drive pork prices higher and hog prices lower.
The Iowa-southern Minnesota live cash price for hogs delivered to plants rose to $54.50 US June 9, up from $50 June 2.
The composite pork carcass cut-out value climbed to $74.41 June 9, up from $69.23 June 2.
Federal slaughter in the U.S. was estimated at 1.9 million up from 1.67 million the week before. The hog slaughter plant in Moose Jaw reopened last week.
Lambs mixed
Ontario Stockyards reported 1,406 sheep and lambs and 69 goats traded last week. Light lambs sold steady to higher, while heavy lambs traded $5 cwt. easier. Sheep and goats held firm.
