Fed cattle lower
Falling boxed beef prices and concerns about record cattle-on-feed supplies in the United States pushed fed cattle prices lower last week.
Fed steer cash averages fell $1 per hundredweight and heifers dropped 50 cents, said Canfax.
Age-verified premiums helped support the heifer average.
Volume rose two percent from the week before, but was still light at 18,500 head.
In light trade Sept. 27, Alberta prices for steers were $84.25 per cwt., flat rail $138.65-$140.65 and heifers $83.25-$86.10.
Canfax said the Canadian market would probably follow the U.S. market lower.
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American packers are slaughtering more than what the domestic and export markets want and rising beef supplies are weighing on price. U.S. domestic beef demand is off, perhaps because of high energy costs and the slowing economy, and exports to Japan are slow.
Stronger prices might materialize in October when cattle supply is expected to tighten and U.S. slaughter drops, said Canfax.
Too much beef
U.S. cutouts lost $5.25 US per cwt. on Choice from the week before, while Select fell $4.80. The Choice-Select spread narrowed to about $9 per cwt. The lower cut-out values spurred beef movement by four percent.
Canadian cut-out values followed suit, losing more than five percent over the past three weeks, said Canfax. However, they are still two to four percent higher than last year.
Calgary wholesale carcass price for delivery this week were $2 Cdn lower in a range of $143-$145.
Feeders weaken
The falling fed cash market and weaker cattle futures market pressured feeder cattle prices lower, said Canfax.
Light feeder steers 300-400 lb. were down $1.75 per cwt. but 400-500 lb. rose 75 cents.
Steers 500-800 lb. fell $1-$1.75 and steers 800-900 lb. and heavier were steady.
Heifers 300-400 lb. fell $1.75 and 400-500 lb. rose $1. Heifers 500-800 lb. were down $1-$1.50 and 800-900 and lb. heavier dropped 50 cents-$1.50.
Volume was good at 42,000 head sold, up two percent from the week before. That was down five percent from last year, said Canfax.
Feeder cattle exports for the week ending Sept. 16 were 6,448, up 32 percent from the week before.
Good demand for D1, 2 cows saw the price rise $1.75. Butcher bulls were steady.
The fall calf run is getting into full swing. Quality animals will continue to get premium prices, said Canfax.
The Canadian dollar has risen but U.S. interest is expected to continue.
In limited stock cow trade, bred cows were $675-$900 and plain types $400-$600. Bred heifers were $800-$1,000 and plain types $400-$750. Cow-calf pairs were $900-$1,200 and plain types $525-$850.
Pork weakens hogs
Falling pork prices drove down cash hog prices in the United States last week.
Slaughter plant margins slipped into negative territory, but they maintained their near record kill pace, increasing the pork supply further, which might weigh on prices this week.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $48.50 US per cwt. Sept. 22, down from $51 Sept 15.
The U.S. composite pork carcass cut-out value drifted lower through the week, settling at $68.02 Sept. 22, down from $72.39 on Sept. 15.
Federal slaughter in the U.S. was estimated at 2.13 million, up from 2.12 million the week before.
Bison steady
Canadian rail carcass prices for top quality bison bulls younger than 30 months were steady at $1.70-$1.90 per lb., said the Saskatchewan Bison Association.
The U.S. Department of Agriculture 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.
Cull cows from drought-affected areas of the United States are now entering the market in higher than usual numbers. This might back up trim inventories and pressure prices lower for most classes of slaughter bison.
Sheep steady to lower
Ontario Stockyards Inc. reported 2,597 sheep and lambs and 273 goats traded last week. All classes of sheep and lambs sold steady to $5 cwt. lower. Goats traded barely steady.
