Packers slow their lines
Fed cattle prices averaged $1-$1.50 per hundredweight lower last week as reduced kills allowed some packers to limit their buying interest, said Canfax.
One packer was short on supply and helped to keep bids from falling further.
Feedlots appeared more resigned to prices in the low $80s and sold some cattle they had carried into August from July.
As a result, volumes surpassed 21,000 head, up 23 percent from the week before.
U.S. interest was generally quiet although a few trades occurred at prices similar to the week before.
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More forward contracting for September delivery into the United States was also apparent.
Alberta prices Aug. 3 were steers $81.50-$83.20 per cwt., flat rail $137.55-$137.70 and heifers flat rail $137.55.
Canfax said the stronger U.S. cash market late last week should support prices this week.
Alberta prices have returned to levels where U.S. fed cattle bids are again competitive. This will help to keep prices in tune with U.S. cash market trends.
Beef demand slows
Beef movement in the U.S. and Canada remains slow given the time of year because of hot temperatures in many places.
The Calgary wholesale market for delivery this week is steady to $1 higher in a range of $141-$142 per cwt.
U.S. cutouts rose $1.50 US on choice and $4 on select last week as reduced kill rates helped support the trade.
The choice-select spread also narrowed seasonally to $13.65 per cwt.
Kills were expected to struggle to reach beyond 600,000 head as packers responded to negative margins by closing plants and reducing shifts, Canfax said.
Heavy feeders pressured
Feeder markets were steady but lightly tested on lighter weight classes while heavier feeders came under pressure, said Canfax.
Some sales were quoted $2-$3 Cdn per cwt. lower on 800 to 900 pound animals while others were barely steady. Quality and condition were factors at some sales because numbers through some markets were small.
Canfax weekly averages were about 50 cents-$1 lower on the heavier classes compared to the week before.
Good rains through central Alberta recently helped to stem the run of grass cattle in that area and consequently, volumes were down 12 percent from the week before to about 18,000 head.
That was still 15 percent larger than the same week in 2005.
U.S. trade saw 2,900 head of feeders travel south two weeks ago, putting the year to date total at 194,000 head, reported Canfax.
That was in line with the five-year pre-BSE average for this time of year, but it was down from last year when there was a flurry of exports following the reopening of the U.S. border.
In August 2005, 6,200 to 10,500 head were exported per week because the U.S. market was stronger than the domestic market.
Canfax said slaughter cow prices were mixed last week with some sales steady and others reporting higher prices. On average, prices were 50 cents-$1 higher.
Cow kills have dropped to less than 10,000 head per week lately.
Butcher bulls were steady.
Feeder sales volumes will pick up seasonally. The Aug. 4 TEAM and satellite sales will see almost 10,000 head offered. Typically, larger volumes are accompanied by lower prices unless demand is exceptional, said Canfax.
The fact that Canadian prices are stronger than the U.S. equivalent in most cases means demand may not be as deep as it was a year ago.
Concerns over higher feed costs are also nipping into cattle feeders’ dreams, said Canfax.
Grass cattle prices appear near the top of the expected range but pens are empty and fed prices are holding at more than $80.
Heat pushed hogs higher
Soaring temperatures in the U.S. Midwest last week cut hog deliveries, forcing packers to bid higher.
The market appeared weaker at the end of the week as many plants planned a one day closure Aug. 7. But some analysts speculated that if heat returns this week, prices could again see an uptick. Hot weather slows hog weight gains.
The Iowa-southern Minnesota live cash price for hogs delivered to plants climbed to $51 US per cwt. Aug. 4, up from $49 July 28.
The composite pork carcass cut-out value rose to $73.50 Aug. 4, up from $70.63 on July 28.
Federal slaughter in the U.S. was estimated at 1.9 million last week, almost steady with the week before.
Sheep steady
Ontario Stockyards reported 1,651 sheep and lambs and 129 goats traded last week. All classes of sheep and lambs sold barely steady. Goats sold at steady prices.
Age discounts on bison
Canadian rail carcass prices for top quality bison bulls younger than 30 months were steady at $1.70 to $1.90 per lb., said the Saskatchewan Bison Association.
Canadian processors reported prices as low as $1.25 per lb. hot hanging weight for top grade bulls older than 30 months.
U.S. weighted average carcass price for under 30 month bison bulls was $179.52 US per cwt., according to the July U.S. Department of Agriculture report.
