Fed cattle stronger
The fed cattle market was 75 cents to $1 higher last week with steers averaging $87.48 per
hundredweight and heifers at $87.37, said Canfax.
Steers ranged from $85.75 to $88 per cwt. live and $145.50 to $146.30 on the rail, while heifers traded between $86.50 to $88.25 live and $145.50 and $146.30 on the rail.
Most feedlots were active sellers with about 23,500 head of cattle trading.
Canadian packers took most of the cattle but some went to the United States as producers took advantage of the recent strength in that market.
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Two weeks ago, fed cattle exports jumped to 18,132 head compared to 12,454 head the week before and around 11,000 head per week for the previous four weeks.
Year-to-date fed cattle exports total 480,557 head and are 20 percent ahead of the same time last year.
The Canada-U.S. cash to cash basis widened slightly to $11.78 under.
The five year (1998-2002) average basis for the week is $8.50 under, while the basis during the same week in 2006 was $13.67 under.
Offerings are expected to remain relatively steady in the next few weeks.
Beef price rises
U.S. cutout values were up sharply last week as packers priced boxes higher in response to the rising live cattle market, said Canfax.
The Choice cutout gained $3.69 US per cwt. to end up at $147.05 Aug. 30. The Select cutout rose $3.62 to $140.57.
The volume moved was down almost 30 percent, which may have been the result of the higher prices, but buying for the post Labour Day period probably didn’t help.
Higher cutout values will be needed to match the increases in cattle costs, said Canfax.
In Western Canada, packers are seeing better prices for middle meats but adding value from end meats continues to be a struggle.
The Calgary wholesale price for delivery this week was $150-$151 per cwt., up $1 from the week before.
Feeders steady
The feeder cattle market traded mostly steady even in the face of building feeder cattle supplies, said Canfax.
Auction market volumes in Alberta were larger as poor harvest weather gave producers the chance to get cattle off pastures and into the market.
Auction volume rose 16 percent to about 45,000 head.
Yearlings off grass made up most of the trade but more calves are starting to show up.
Heavy feeders were mostly steady. The calf market traded in a wide range with volumes still relatively light. Quality cattle traded at the high end of the range as buyers discounted cattle such as bulls, stags and those with horns, said Canfax
Steers 500-600 lb. were mostly steady. Sales up to $131 per cwt. were reported, while the average price was $117.
Heifers were $10 per cwt. back at $106.47.
Feeder exports for the week ending Aug. 26 were 6,135 head. The previous two weeks saw between 4,600 and 4,800 head of cattle move south.
Year-to-date exports total 243,931 head, an increase
of 20 percent over the same period last year.
The supply of cull cows grew and prices were $1-$2 lower, as were butcher bulls.
Canfax expects feeder cattle offerings will grow through September. Heavy feeder prices should be well supported because of strong feedlot demand.
Calf prices will trade in a wide range depending on quality and condition, but prices should come under pressure as supplies grow.
Unless feed prices drop or the Canadian dollar weakens, cattle prices may have peaked, Canfax said.
Demand for bred cows and cow-calf pairs is poor.
Many cow-calf pairs were split last week with the cows trading into the cull market. Those that stayed together traded from $550-$1,200 per pair. Bred cows and bred heifers sales were reported at $450-$650.
Hogs weaken
U.S. cash hog bids fell last week as pork prices fell in line with large supplies after recent strong slaughter totals.
Plants were well supplied heading into the Labour Day week. With the lower hog prices, plants were able to post positive margins.
Iowa-southern Minnesota hogs traded at $47 US per cwt., down from $51 posted on Aug. 24.
The U.S. composite pork carcass cutout value fell through the week to $68.74 Aug. 31. The cutout was $71.54 Aug. 24.
U.S. slaughter for the week was estimated at 2.09 million, compared to 2.07 million the week before and 2.05 million a year ago.
Bison report
The Canadian Bison Association was not available.
The previous week, 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.
Light lambs rise
Ontario Stockyards reported 1,635 sheep and lambs and 132 goats traded last week.
Good, well-fed light lambs sold stronger.
All other lambs and sheep and goats traded steady.
