Fed price turns up
The fed cattle market was slow to develop but trade turned active Aug. 22 and feedlots sold cattle at prices mostly steady to slightly higher than the week before, said Canfax.
Alberta prices Aug. 23 were steers $84.25 to $87.35 per hundredweight live and $143.35 to $144.80 on the rail with the weekly average 50 cents higher at $86.66.
Heifers ranged from $85 to $86.55 live and $144 to $144.80 on the rail and also averaged 50 cents higher at $86.03. About 23,000 head sold.
Some producers resisted bids in anticipation of higher prices this week due to the sharp increase in the U.S. fed market Aug. 23.
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The cash to cash basis was unchanged at $11.27 under.
With the wide basis and large cattle supplies, exports are growing. Year-to-date fed cattle exports at 462,425 head are 19 percent above year ago levels.
Cheaper beef sparks movement
The Choice cutout dropped $1.03 US to $143.26 per cwt. and Select fell $1.81 to $136.95.
The Choice-Select spread widened to $6.41 from $5.62 the week before, said Canfax.
The lower cut-out values helped beef sellers move more product as volume jumped 31 percent over the week before.
News of South Korea restarting inspections of U.S. beef imports are expected to support the market.
Higher fed cattle prices will encourage packers to move the cutout higher to help balance the books.
In Canada, some packers lowered prices to stimulate sales and others were forced to do the same.
Ground beef appears to be the beef product of choice for consumers. Demand for middle cuts was reported to be softening while hips and chucks were steady.
The Calgary wholesale price for delivery this week was $148-$150, down $1-$3.
Feeder volume increases
More feeders are going to market due to deteriorating pasture conditions and strong demand.
Auction market volumes jumped 27 percent to about 39,000 head.
Prices were mostly steady, said Canfax. Prices in some classes edged lower, likely because of quality rather than a change in the trend.
Heavy feeders made up the largest segment of the mix offered.
Steers 900 lb. and heavier averaged above $100 per cwt. with prices ranging to the $104 level depending on weight and quality, while 800 lb. cattle averaged $107 with trades up to $110.
Heifers were mostly $5-$8 per cwt. lower than steers.
The calf market was lightly tested because of low marketings, said Canfax. Steer calves were mostly $110 to $125.
Feeder cattle exports for the week ending Aug. 18 were 4,611 head. Year-to-date exports are 19 percent above year ago levels.
The trend is expected to continue through the rest of the year as strong U.S. demand is expected due to the softer corn market.
Cull cows fell $1 to $2.50 per cwt. Slaughter bull prices were down about $1.
Feeder numbers ready for market are expected to grow.
Heavier grass cattle will make up the majority of feeder sales with only a few calves in the offerings.
The market should be well supported over the next two weeks with the recent gains in deferred live cattle futures contracts, said Canfax.
Stock cow and bred heifer trade was too light to establish a market.
Volumes will remain light for the next two weeks.
China buys pork
U.S. packer margins improved thanks to recent lower hog prices.
Storms in the U.S. Midwest disrupted operations at some plants.
Smithfield announced a deal to sell 60 million pounds of pork to China with more sales anticipated. The news supported hog futures in Chicago.
Iowa-southern Minnesota hogs traded at $51 US per cwt. Aug. 24, mostly steady with the $51.50 posted Aug. 17.
The U.S. composite pork carcass cut-out value rose early in the week past $73, but dropped to $71.54 Aug. 24. The previous week the cutout was $72.38.
U.S. slaughter for the week was estimated at 2.07 million, compared to 1.99 million the week before and 2.01 million a year ago.
Bison report
Marketers report a large number of cows on offer, said the Canadian Bison Association.
Grade A carcasses from bison bulls younger than 30 months in the desirable weight range in Canada were $1.80 per lb., with prices to $1.85 on sales to the U.S.
Heifers were $1.60-$1.70.
Rail prices for top quality, youthful, older-than 30-month bulls and heifers averaged $145, with sales to $160.
Cull cows and bulls ranged from 40 to 50 cents per lb. hot hanging carcass.
Sheep, goats steady
Ontario Stockyards reported 1,868 sheep and lambs and 170 goats traded last week.
Lambs were barely steady but sheep and goats were steady.
