Fed cattle weaker
The fed cattle market lost a little steam last week with steers down 85 cents per hundredweight and heifers $1.40 lower.
Canfax said sellers passed on some of the lower bids but most feedlots are still considered fairly current in their sales.
There was a smaller showlist but also a smaller kill, so most packers seemed to have adequate inventory.
Buying interest out of the northwest U.S. appeared to improve as its situation tightened.
This week’s volume was down 15 percent at nearly 20,000 head, respectable for a short week, said Canfax.
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Alberta prices July 6 were steers $87-$88.35, flat rail $142-$145.80 and heifers $86.25-$87, flat rail $145.50.
Packers will try to pressure cash prices lower whenever they see an adequate supply, but improved U.S. interest should help to offset this, said Canfax.
As a result of the closer tie to the U.S. market, basis levels could weaken a bit through the month.
Beef lower
The Calgary wholesale market is $1 lower for product delivered this week with handyweight steers at $146-$149.
The Canadian kill two weeks ago of 66,000 was followed by the holiday-shortened week meaning less product in the pipeline.
The beef market is expected to be fairly quiet over the next 60 days, said Canfax. Pricing direction will come from the U.S. cutout, which is expected to lose ground.
U.S. cutouts dipped by the end of the week with Choice down 75 cents US and Select down 10 cents.
Choice cutout is up 14 percent over last year and Select is identical to one year ago. The Choice-Select spread of $22 cwt. compares to $3 a year ago.
Recent imports of U.S. product into Eastern Canada have increased the inventory of some items.
Feeders jump high
The feeder market is hot, said Canfax.
Heavy steers 800-900 pounds and heavier gained $2.25-$2.50 per cwt. and heavy heifers were up $1-$1.25.
Mid-weight steers 500-600 lb. were steady while 600-800 lb. steers were up 50 cents-$2.50.
Heifers 500-800 lb. were steady to 25 cents higher.
Light steers 300-500 lb. rose 50 cents-$2 and light heifers were up 50 cents-$1.
Alberta auction market volume, at 10,661 head, was light, down 34 percent from the week before and two percent lower from last year, partly due to the Canada Day holiday.
Butcher cows and bulls rose $3.25 and $1.25 respectively.
Canfax said that with dwindling feeder numbers and good demand for cattle heading to auction, trade should continue steady to strong in the coming weeks.
Feeder cattle exports for the week ending July 1 were 2,571, up 31 percent from the week before.
Stock bred cows in central and northern Alberta traded lower with most at $850-$1,300 and plain types at $450-$800. Bred heifers in northern Alberta traded steady on medium quality $450-$900. Cow-calf pairs in central and northern Alberta traded lower at $950-$1,300, with plain types at $700-$900.
Hogs steady
Cash hog prices in the United States were mostly steady last week, but analysts expected a weaker market this week.
Carcass weights are climbing and analysts expect the number of market-ready hogs will increase in coming weeks.
The Iowa-southern Minnesota live cash price for hogs delivered to plants dipped to $52-$53 US per cwt. July 7, from $53.50 on June 30.
The composite pork carcass cut-out value fell to $76.99 July 7, down from $77.83 June 30.
Federal slaughter in the U.S. for the holiday-shortened week was estimated at 1.64 million last week, down from 1.85 million the week before. To date, U.S. hog slaughter is equal to the pace set last year.
Ron Plain of the University of Missouri said in his weekly hog market comments that he expects pork production in the last half of 2006 to be slightly larger than a year ago. But it is also possible that production may be reduced from the expectations based on the June hogs and pigs report due to circovirus death loss and smaller slaughter imports from Canada.
Lambs steady
Ontario Stockyards reported 852 sheep and lambs and 92 goats traded. All classes of lambs and goats traded at steady prices. Good sheep sold $5 per cwt. higher.
Bison steady
Canadian rail carcass prices for top quality younger than 30 month bison bulls were steady at $1.70-$1.90 per lb. last week, said the Saskatchewan Bison Association.
The North American Bison Co-operative of New Rockford, North Dakota, the world’s largest processor of bison meat, has announced a forward pricing plan for September to December with prices set at $1.90 US per lb. hot hanging weight for bulls younger than 30 months and $1.80 for heifers.
