Fed cattle prices rise
Higher beef prices and strong packer profits in the United States led to stronger fed cattle prices during most of last week, but the market ended down from the peak because of soaring oil prices and worries over major U.S. financial institutions.
In Canada, with strong packer interest, steers averaged $98.21 per hundredweight, up $1.29 compared to the week before, and the heifer average rose 98 cents to $97.12, Canfax said.
Sale volume of slightly more than 24,000 head was up three percent over the week before.
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The cash to futures basis narrowed considerably to $4.81 under compared to $9.18 under the week before.
Canadian buyers dominated the market with few cattle heading south.
U.S. fed exports totalled 5,452 head, down 46 percent compared to the week before because of the short holiday week, and 14 percent lower than the same week last year.
In the year to date, 367,874 head have been exported, down 10 percent from last year.
Canfax said supplies of market-ready fed cattle are tight and offerings are not expected to increase until the end of the month.
Lighter cattle are still being pulled forward, helping feedlots stay current in their marketing.
Larger U.S. inventories toward the end of the month may spill over into Canada to pressure prices lower.
Slaughter cows climb
D1, 2 slaughter cows rose $3.25-$3.50 per cwt. D3, 4 cows rose $2.50. Feeder cows fell 75 cents, Canfax said.
Butcher bull prices rose 75 cents to average $58.58 with top end prices to $75.
U.S. export interest grew in cows and bulls.
Beef markets up
U.S. Choice cutouts rose $2.22 to $173.80 and Select was up $1.49 at $166.62. That was the highest Choice price since 2004 when Canfax started collecting data.
The Calgary wholesale market for delivery this week rose $3.50 to $156-$163. The Montreal wholesale market was up $5 to $163.
Feeder values rise
Feeder cattle prices rose $2.75-$3 per cwt., said Canfax.
Many auction markets in the eastern part of the Prairies are closed through July and volumes will be seasonally low there.
Steers and heifers 300-400 pounds recovered the $5-$5.25 lost the week before.
A larger volume of fall calves is starting to hit the market.
Steers 400-500 lb. rose $2 while 500-800 lb. rose $3.
Steers 800-900 lb. and heavier saw strong demand with prices up $2.25.
Heifers 400-500 lb. jumped $4 to $100.28. Heifers 500-600 lb. rose $2.75, while 600-800 lb. climbed $1.25-$1.50, 800 lb. climbed $2.75 and 900 lb. and heavier were up $1.75.
Volume rose to 17,155, up 43 percent over the holiday-shortened week and 65 percent higher than last year.
Exports to the U.S. in the first week of July totalled 5,720 head, down 62 percent from the previous week but a whopping 93 percent higher than last year.
Canfax said volumes are expected to decline in the seasonal norm.
Lighter fall-born feeder volumes will start to increase.
Prices are expected to be steady this week with good interest in all weight ranges.
Cow-calf pair prices dropped $5.58. Given the strong slaughter cow market, quality pairs should see prices improve.
Fewer cattle on feed
There were 783,554 cattle on feed in Alberta and Saskatchewan July 1, down 12 percent from a year earlier and down 11 percent from 2006.
June placements totalled 106,873, down 16 percent from last year and 19 percent lower than 2006.
Placements heavier than 700 lb. fell 23 percent compared to 2007 and 800 lb. and heavier were down 20 percent. This reflects increased exports in advance of the country-of-origin labelling deadline and the large number of heavier animals on grass.
Marketings by the Canfax survey group totalled 152,701 head, down 11 percent from June 2007. That was 81 percent of all marketings.
Hog supply tightens
Stronger pork prices helped raise U.S. cash hog values.
The Iowa-southern Minnesota average hog weight for the week ended July 5 was 259.6 lb., down from 261.7 lb. the previous week and 263.3 lb. last year. This indicates tight slaughter-ready supplies.
Analysts believe consumers might avoid high beef prices and buy lower priced pork when at the meat counter.
Iowa-southern Minnesota cash hogs were $56 US per cwt. July 11, up from $52.50 July 3.
The U.S. composite pork carcass cut-out value was $81.12 per cwt., up from $79.37 July 3.
U.S. slaughter for the week ending July 11 was estimated at 2.15 million, up from 1.7 million the week before, and 10.3 percent more than last year.
Bison steady
The Canadian Bison Association said markets were steady. Margins are shrinking because meat prices have not kept up with slaughter animal prices.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.05-$2.25 per lb. hot hanging weight. Heifers were $1.95-$2.20 per lb. Cull cows and bulls were 90 cents to $1 per lb.
Heavy lambs down
Ontario Stockyards reported 1,941 sheep and lambs and 170 goats traded July 7. Light lambs were steady while heavy lambs were $5-$10 lower. Sheep traded steady to higher. Good fed goats held steady but plain and thinner types were under pressure.
