Fed cattle higher
Beef prices jumped higher last week and retailers are forward buying in expectation of reduced cattle supplies and strong beef prices in the future, said Canfax.
Fed cattle prices in Western Canada rose during the holiday-shortened week.
Steers averaged $96.92 per cwt., up $4.16 and heifers rose $3.78 to finish the week at $96.14.
Fed prices are the highest since May 2007, said Canfax.
Volume dropped seven percent to 23,500 head.
The cash to futures basis widened slightly to $9.18 under compared to $6.48 under the week before.
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Exports were 7,951 head, steady with the week before but 23 percent lower than the same week last year.
Canfax said captive cattle will start to dominate the showlist offerings, but weekly volumes should remain relatively steady and cash prices should remain strong.
Feeder prices down
Feeder cattle prices dropped 50 cents-$1.25 per cwt. last week.
With many auctions closed and volumes low, trends were difficult to interpret.
Steers and heifers 300-400 pounds fell $5-$5.25 per cwt. Low seasonal supply and quality can swing this range dramatically from week to week, Canfax said.
Steers 400-600 lb. were $1.75-$2 lower.
Steers 600-800 lb. fell 25-50 cents while steers 900 lb. and heavier saw strong demand at steady prices.
Heifers 400-600 lb. were 75 cents-$1.75 lower. Heifers 700-800 lb. were steady.
Strong demand for 900 lb. and heavier animals pushed prices up $3.
Volume at 11,958 was down 58 percent from the week before, and down 42 percent from the same week last year.
About 9,270 feeders moved south two weeks ago, down six percent from the week before but 15 percent higher than last year.
Canfax said volumes should be seasonally low for the remainder of July. Prices should be steady this week with strong interest on heavier feeders.
In mid July, early weaned 550 lb. calves might start hitting the market as cow-calf producers target an early salvage for cull cows, Canfax said.
Quality of the new calf crop should see prices improve.
Cow-calf pair volumes are increasing. The average price was $949.64, with top end pairs up to $1,440, Canfax said.
Bred cows rose $26.25 from the week before, averaging $768.75.
No bred heifer sales were reported.
Cow prices rise
D1, 2 slaughter cow prices rose $3.25-$3.50 per cwt. live. Top end young cows were up to $104 on the rail.
D3, 4 cow prices also rose $3.25.
Feeder cow prices rose $2.73. Butcher bulls rose $1.75.
Canfax said cow volumes will start to increase in the next couple of weeks but strong packer interest and good margins should maintain steady prices throughout the first half of July.
Beef prices rise
U.S. Choice cutout rose $6.75 US to $171.58 while Select rose $5.48 to $165.13. The prices were $32 higher than the same week a year ago.
Cattle supplies are expected to tighten in the U.S.
The main grilling holidays are now over and consumer demand will trend lower through the rest of summer.
The Calgary wholesale price for delivery this week rose $4 to $160 Cdn.
Hog prices drop
Demand from U.S. hog packers dropped because of the holiday-shortened week. The hog supply appears ample to meet packer needs.
Iowa-southern Minnesota cash hogs fell to $52.50 US per cwt. July 3, down from $55 June 27.
U.S. composite pork carcass cutout values dipped to $79.39 July 3, down from $79.80 June 27.
U.S. slaughter for the week ending July 5 was estimated at 1.7 million, down from 2.13 million the week before, but 3.4 percent more than last year.
Hog futures prices fell after the U.S. hog and pig reports showed a larger than expected herd size.
The large numbers in the report prompted Robert Moskow, a food stocks analyst at Credit Suisse in New York, to forecast the possibility of a repeat this year of a 1998-like fourth quarter.
At the end of 1998 U.S. hog prices fell below $10 US per cwt. when the supply of market ready animals overwhelmed slaughter capacity.
Bison steady
The Canadian Bison Association said bison markets were steady.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.05 to $2.25 per lb. hot hanging weight. Heifers were $1.95 to $2.20 per lb. Cull cows and bulls were 90 cents to $1 per lb.
To the end of May, 9,286 head have been federally slaughtered in Canada, an increase of 31 percent over last year. U.S. slaughter in the same five months was 22,237, up 18 percent over last year.
Lambs steady
Ontario Stockyards reported 1,309 sheep and lambs and 99 goats traded June 30.
Lambs were steady. Prices for good sheep rose while thin and plain types were under pressure.
Goats were barely steady.
