Loonie pressures market
The dollar continues to skyrocket and Canadian packer kill levels continue to be mediocre, according to Canfax.
Adequate fed cattle supplies and heavier carcasses all contributed to softer prices last week.
Steers traded from $74.05-$77.50 per hundredweight live and $125.75-$127.90 on the rail with a weekly average price of $75.66, down $2.57 from the week before.
Heifers traded from $74.55-$77.65 per cwt. live and $125.85-$127 on the rail for a weekly average of $76.31, down $2.20, Canfax reported.
Trade volume dipped to about 17,000 head, but the show list was smaller.
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Most cattle listed sold, but some producers either passed on current bids or refused to offer cattle given the current low prices.
Alberta steer carcass weights grew three pounds for the week ending Oct. 27 to 856 lb. That was five lb. lighter than the same week last year and 12 lb. above the same week of 2005, Canfax said.
Steer carcass weights may exceed year-ago levels this week, which will likely hurt feedlot leverage with packers.
All Alberta plants were active in the market with sales distributed a little more equally.
Fed cattle exports are expected to continue at the current pace given the wide basis and poor local demand.
Beef prices weak
Cut-out values fell hard with the Choice down $4.44 to $138.95 US and Select down $2.21 to $127.61.
This Choice-Select spread narrowed to $11.34 from $13.57 the week before, Canfax said.
The lower cut-out values helped packers move more product.
The beef market will continue to battle with large supplies of pork and poultry.
Canadian cutouts also fell. The AAA for the week ending Oct. 27 fell $2.14 to $146.72 Cdn. The AA cutout was 81 cents lower at $141.66.
Canadian cutouts have been at a premium to the U.S. market, leading to increased imports of U.S. beef, up 26 percent over 2006.
With the rising Canadian dollar and lower U.S. cutout, this trend will continue for the foreseeable future, said Canfax.
The Calgary wholesale market for delivery this week was $2 lower at $132-$134.
Feeder prices fall
The soaring Canadian dollar and high feed grain prices continue to pressure feeder cattle prices with no immediate relief expected in the market until volumes decrease.
Sales climbed to 88,514 head, up 25 percent over the week before and 15 percent higher than a year ago.
Steers 300-400 lb. fell 60 cents per cwt. while 400-500 lb. steers were steady. Steers 700-900 lb. and heavier were hit hard, falling $3-$4.50.
Light heifer calves dropped $4.50 per cwt. with 600-900 lb. and heavier down $2.50.
Feeder exports to the U.S. totalled 13,243, down 24 percent from the week before.
D1, 2 cows were down 40 cents. Butcher bulls were $24-$37, down 50 cents.
Slaughter cows and bulls should remain steady as bred cow sales increase in the next couple of weeks.
Hogs continue fall
An abundance of market-ready hogs continued to force cash prices lower in the U.S. The strong loonie is pressuring prices in Canada.
Big slaughter numbers have produced lots of pork and that has depressed pork prices, but packers were still profitable and kept up a strong kill rate. Chicago hog futures fell hard during the week.
Iowa-southern Minnesota cash hogs traded at $39 US per cwt. Nov. 2, down from $41 Oct. 26.
The U.S. composite pork carcass cut-out value closed at $57.31 Nov. 2, down from $59.25 Oct. 26.
U.S. slaughter for the week was estimated at 2.322 million, compared to 2.324 million the week before and 2.187 million a year ago.
Bison report
The Canadian Bison Association said prices were steady with the week before.
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 had prices up to $1.65 per lb.
Cull cows ranged from 60-70 cents per lb. hot hanging carcass. Bulls were 45-65 cents.
Sheep and lambs firmer
Beaver Hill Auction in Tofield, Alta., reported 1,064 lambs and 282 goats traded Oct. 29.
Sheep and goats sold steady. Quality was a big factor with fancy types fetching premiums and off types and light animals hard to sell. Producers should grain finish before selling. Meat buyers are selective and there is little support from feedlots.
Lambs lighter than 70 lb. were $80-$138 per cwt.
Lambs 70 to 85 lb. were $95-$133, 86 to 105 lb. were $89-$128 and 106 lb. and heavier were $80-$114. Overweight lambs were sharply discounted.
Rams were $46-$65 per cwt. and breeding rams were $72-$88. Breeding ewes were $70-$104 and cull ewes $49-$70 per cwt.
Good kid goats heavier than 50 lb. were $150-$202.50 per cwt. Kids lighter than 50 lb. were $30-$150.
Nannies were $47-$86 per cwt. and mature billies were $97.50-$177.50.
Ontario Stockyards reported 1,618 sheep and lambs and 125 goats traded last week. Lambs were steady to lower. Fat sheep were under extreme pressure. Goats sold steady.
