Fed prices lower
The fed cattle market continued its downward trend last week, squeezed by the strong Canadian dollar, said Canfax.
Steers traded $76-$78.45 per hundredweight live and $130-$131.80 on the rail for an average of $78.23, down 74 cents from the week before.
Heifers traded $77.25-$79.50 live and $129-$131.80 on the rail for an average of $78.51, down 52 cents.
Volumes were up slightly with about 19,000 head trading but that wasn’t enough to clean up all of the week’s cattle.
Some producers are passing current bids, but others are moving extra cattle because they worry about increasing carcass weights.
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Fed exports were large two weeks ago with 19,656 head moving to U.S. plants.
Although steer carcass weights were lower two weeks ago, producers report increasing volumes of heavy cattle that could be subject to weight discounts.
Meat market flooded
The beef market struggled as recent large kill volumes have put a lot of beef on the market in competition with large pork and poultry volumes, said Canfax.
In the United States, the Choice cutout fell $2.01 US to $143.39 while the Select dropped $3.29 to $129.82.
The Choice-Select spread widened to $13.57.
U.S. packers are losing money and might cut production at some point to try to push cutouts higher.
However, they are likely to face stiff resistance because of pork and poultry alternatives and because the slowing American economy could reduce demand.
Canadian packers face increased competition from U.S. beef imports.
Cutouts are being forced lower to keep up with imported prices.
The Calgary wholesale market for delivery this week was $1 lower at $135-$137 Cdn per cwt.
Quality feeders rise
Feeder cattle prices edged higher at the top end of the range despite increased volumes.
Alberta auction volume increased three percent to 70,950 head.
Steers in the 800-900 pound and heavier class and 300-400 lb. class started the week strong and all weight classes gained momentum by week’s end.
Steers 300-400 lb. averaged $115.15, finishing the week off $2.25 higher.
Steers 600-700 lb. remain steady to slightly higher with an increase of 25 cents.
The exceptions were heifers 800-900 lb. falling 60 cents and 900 lb. and heavier down 85 cents-$1.35 to an average of $83.13.
D1, 2 cows were mostly steady at $31.53 per cwt. while D3, 4 were down $1.05-$2.25.
Butcher bulls were relatively steady with light pressure at $30.50 per cwt.
Canfax said buyer interest should be stronger as feeder volumes increase.
Steers 800-900 lb. and heavier will maintain interest as fed cattle bunk replacements.
Feeder exports to the U.S. should remain steady.
Bred cow trade was too small to quote.
Hog herd shrinks
A Statistics Canada report showed that Canadian hog inventories continued to decline as a result of the high Canadian dollar and increases in feed costs.
The total hog inventory Oct. 1 was 14.43 million head, down 1.7 percent from April 1 and down 3.1 percent from Oct. 1, 2006.
The trend is similar in both Eastern and Western Canada.
An abundance of market-ready hogs pressured cash prices lower in the U.S. last week.
The rapid pace of slaughter has produced large supplies that have depressed pork prices, but packers were still profitable.
Iowa-southern Minnesota hogs traded at $41 US per cwt. Oct. 26, down from $43.50 Oct. 19.
The U.S. composite pork carcass cut-out value closed at $59.25 Oct. 26, down from $62.03 Oct. 19.
U.S. slaughter for the week was estimated at 2.32 million, compared to 2.35 million the week before and 2.18 million a year ago.
Bison report
The Canadian Bison Association said prices are volatile.
The effect of the rising dollar has been softened by the tighter supply of quality slaughter animals younger than 30 months.
Grade A carcasses from bison bulls younger than 30 months in the desirable weight range were $1.80-$1.90 per lb. Heifers were $1.65-$1.75.
Rail prices for top quality, youthful, older-than 30-month bulls and heifers averaged $1.65 per lb.
Cull cows were 60-70 cents per lb. hot hanging carcass. Bulls were 45-65 cents.
Sheep and lambs firmer
Beaver Hill Auction in Tofield, Alta., reported 781 sheep, lambs and goats traded Oct. 22.
Demand improved from the week before and prices firmed. Off types were still under pressure. Goats were down a little but still strong with some interest in bred nannies.
Lambs lighter than 70 lb. were $80-$128 per cwt. Lambs 70-85 lb. were $100-$124, 86-105 lb. were $105-$119 and 106 lb. and heavier were $104-$114.
Rams were $50-$65 per cwt. and cull ewes $50-$63 per cwt. Good kid goats were $170-$205 per cwt.
Cull nannies were $50-$83 per cwt., young bred nannies were $150-$170 and mature billies were $141-$160.
Ontario Stockyards reported 1,525 sheep and lambs and 150 goats traded last week. Lambs, sheep and goats sold steady.
