Fed cattle lower
Fed cattle struggled last week with steers down $2.25 per hundredweight and heifers down $1.50, Canfax said.
Packers pulled in their horns quickly once they saw the futures market spiraling lower. They seemed comfortable with inventory, especially in the northwestern United States.
Producers initially rejected the lower bids but trade developed midweek. Weekly volume dropped 27 percent to about 18,000 head.
Alberta prices Sept. 14 were steers $84.65 per cwt., flat rail $140.75 and heifers $84-$86.35.
The drop can be attributed to large beef supplies, a weak cut-out value and negative packer margins, said Canfax.
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U.S.-Alberta basis levels of around $13 under are normal for this time of year.
Beef prices drop
The Canadian cutout from early September showed significant signs of cracking with AAA down $6.15 from the end of August and AA down $1.60.
Middle meats took the brunt of the decline but price weakness was evident across the board.
Calgary wholesale carcass prices for delivery this week are $2 lower in a range of $145-$146.
The U.S. cutout struggled with Choice on Sept. 14 down $2.40 US from Sept. 7. Select was down $1.65.
This narrowed the Choice-Select spread to $9.50 from $10.25 the week before.
Beef movement was typical for the season.
Feeder prices mixed
Auction market volumes picked up again with 41,134 sold, steady with last year, said Canfax.
Feeder exports for the week ending Sept. 9 were 4,882. Prices were mixed likely due to quality with light steers 300-400 lb. up $3 Cdn and steers 400-600 lb. down $1-$2.
Steers 600-800 lb. were steady to $1 higher and heavy feeder steers 800-900 lb. and heavier were steady to $1 lower.
Heifers 300-600 lb. were down $1-$3, heifers 600-800 lb. were down $1 and heavy heifers 800-900 lb. fell $1, while 900 lb. and heavier heifers were steady.
D1, 2 cows fell $2 and butcher bulls by $2.
Canfax said feeder prices could struggle, given the discounted futures market and weaker fed cash prices. Volumes should continue strong.
D1, 2 cow prices will probably continue to struggle, especially if they are wet cows coming off grass.
Few stock cattle are heading to market. Plain bred cows were $400-$840 and plain bred heifers $550-$790. Cow-calf pairs traded at $600-$1,100.
Cattle on feed
The number of cattle on feed in Alberta and Saskatchewan on Sept. 1 rose 17 percent from the same time last year. The total was two percent smaller than in 2000 and two percent larger than in 2001, Canfax said.
Fed cattle marketed in August totalled 210,587, which included a 19 percent decrease in domestic slaughter and a six percent decrease in exported slaughter cattle.
Placements at 184,853 were similar to last year, but this August saw heavier feeders make up a larger percentage of the placements.
Hog prices steady
A strong slaughter pace supported U.S. hog prices, more than meeting the seasonal increase in market ready hog supply.
U.S. Department of Agriculture estimated slaughter on Sept. 14 at 414,000 head, close to the estimated full industry capacity of 416,000.
Pork prices remained strong enough for packers to maintain positive margins.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $51 US per cwt. Sept. 15, little changed from $50.50 Sept 8.
The U.S. composite pork carcass cut-out value edged higher midweek, but stepped back to $72.39 Sept. 15, down from $73.85 on Sept. 8.
Federal slaughter in the U.S. was estimated at 2.12 million, up from 1.89 million during the holiday-shortened week.
Bison steady
Canadian rail carcass prices for top quality bison bulls younger than 30 months were steady at $1.70-$1.90 Cdn per lb.
The USDA Sept. 12 report said the weighted average carcass price for hot hanging weight bison bulls younger than 30 months was $180.12 US per cwt., down seven cents from the month before.
Lambs steady to stronger
Ontario Stockyards Inc. reported 811 sheep and lambs and 324 goats traded last week. All classes of sheep, lambs and goats saw steady prices.
Beaver Hill Auction in Tofield, Alta., said 1,061 sheep and 173 goats traded Sept. 11.
Sheep and goats prices were steady to stronger for quality on offer.
Lambs under 70 lb. were $154-$174 Cdn per cwt. Lambs 70-85 lb. were $142-$149.50, 86-105 lb. were $120-$143 and heavier than 105 lb. were $123-$128.50.
Replacement ewes were $77-$91, rams $54-$86 and cull ewes $56-$72. Good kid goats were $125-$192.50, nannies $68-$145 and mature billies $105-$132.
