Fed market stronger
Fed cattle prices were steady to 75 cents per hundredweight higher last week thanks to stronger demand and reduced supply, said Canfax.
U.S. buying activity and prices were about the same as the week before.
Volume was slightly less than 20,000 head, down six percent from the week before.
Feedlots appear to be getting back to selling on schedule and carcass weights should drop in November, said Canfax.
Alberta prices Oct. 26 saw steers at $84.50-$86.75 per cwt., flat rail $141.90-$143.25 and heifers $85.90-$87.25, flat rail $142-$142.80.
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Prices are expected to be firm to stronger again this week.
The basis has been slow to improve as the U.S. market also picked up.
Canfax said feedlots should continue to be aggressive sellers, although the market is not meeting the break-even price.
Beef slightly stronger
Canadian cutouts were up marginally and movement is considered slow, said Canfax.
Calgary wholesale beef prices were steady to $2 higher in a range of $143-$145 for delivery this week.
U.S. cutouts rose 25-50 cents US over last week, said Canfax.
Slaughter in the United States was expected to be steady, meaning there won’t be much push to increase wholesale beef prices.
U.S. domestic beef demand in the third quarter was estimated to be down six percent from 2005. U.S. packers have struggled to pressure beef prices significantly higher despite reducing slaughter in recent weeks.
Feeder prices drop
Feeder prices continued to be pressured downward with a wide spread in prices, said Canfax.
Top quality calves saw good demand. Plainer types experienced the most pressure.
Volume rose to 86,937 head, up five percent from the week before but 14 percent below last year.
Yearlings made up a smaller percentage of offerings and experienced the most pressure with 700-900 pounds and heavier steers down $2-$3 Cdn and heifers 700-900 lb. and heavier down $1-$4.
Steers 500-700 lb. were steady to $2.25 lower and heifers 500-700 lb. were 75 cents-$2 lower.
Steer calves 300-500 lb. were 50 cents-$3.25 lower and heifer calves 300-500 lb. were $1.25-$3.25 lower.
For the week ending Oct. 21, 5,639 feeder cattle were exported, up 41 percent from the week before and 56 percent lower than last year.
The cow run has picked up and prices were pressured lower with D1, 2 cows down $3 and butcher bulls down $1.50.
With grain prices continuing to climb, feeder prices will be pressured in coming weeks. Look for slaughter cows to also trade lower, said Canfax.
In stock cow trade, medium to good quality bred cows traded higher with most at $750-$1,100 and plain types $450-$700.
Bred heifers were higher at $850-$1,100 and plain types $450-$800.
Hog prices stronger
Hog and pork prices have held up well considering the strong rate of slaughter this fall.
The United States Department of Agriculture said the average U.S. hog carcass was 267 lb. two weeks ago, one lb. lighter than a year ago, indicating that producers are current in their marketing.
The Iowa-southern Minnesota live cash price for hogs delivered to plants was $47 US per cwt. on Oct. 27, up slightly from $46-$46.50 on Oct. 20.
The U.S. composite pork carcass cut-out value fell all week, settling at $67.36 Oct. 27, up from $65.95 Oct. 20.
