Canadian fed prices fall
Canadian fed cattle prices last week fell as packers relied on their own contract supplies. As well, they were buying for a holiday-shortened week, Canfax said.
The steer average fell $1.65 to $92.16 per hundredweight last week, and heifers fell $1.32 to $91.88.
Chicago live cattle futures rose, causing the Alberta cash to futures basis to weaken by 55 cents to $8.61 under.
Slaughter in Alberta totalled 45,272 head compared to 43,324 a year ago. Canadian slaughter totalled 63,567.
In the United States, fed cattle trade was fairly quiet as packer bids came out early in the week at $92-$93 US and feeders asked for $97-$98. The premium of the October futures to cash stiffened feeders’ resolve to wait for higher prices.
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Exports to the U.S. totalled 7,711, down from 8,185 the week before and down from last year’s 10,600 head.
Packer interest might increase in August, Canfax said.
Live cattle futures rallied at the end of last week, and that could support cash prices this week. Futures rose after the U.S. Department of Agriculture reported that beef export shipments two weeks ago totalled 13,900 tonnes, the largest since the first U.S. BSE case in December 2003. Renewed sales to South Korea helped boost that number.
D1, 2 cows in Alberta saw good demand with prices from $40 to $64 Cdn per cwt. The average was $52.47, up $1.72 from the week before.
Butcher bulls were $47 to $81 and averaged $63.44, steady with the week before.
Exports of slaughter cows and bulls totalled 1,669 head.
Cutouts fall
U.S. cut-out values were steady to weak on moderate demand, and moderate to heavy offerings resulted in a mixed week for prices.
The Choice cutout declined $1.90 US to close July 31 at $158.48. Select fell $3.60 to $151.97.
The Calgary wholesale for delivery this week was $162- $167 Cdn.
Feeders fall
Many auctions had typically small midsummer volumes with limited feeders. There were more cows and bulls than last year.
Lighter cattle were under pressure while heavier cattle saw stronger demand.
Steers averaged 90 cents per cwt. lower and heifers were 35 cents lower.
Alberta steers heavier than 700 pounds fell 80 cents and heifers were two cents lower.
Steers lighter than 700 lb. dropped 97 cents and heifers were five cents lower.
Canadian feeder exports to the United States totalled 1,291 head, down from 3,863 the week before. The new mandatory country-of-origin labelling rules are causing U.S. feeders to back off from Canadian cattle. This is expected to continue.
Canfax expects auction market volumes to be steady this week with strong demand for cows and bulls.
Later in August, expect more feeder cattle and fewer cows and bulls.
There was no trade in bred cows. Cow-calf pairs were $500 to $1,150 with an average of $876 on light seasonal volume.
Pork price makes record
U.S. pork cut-out prices rose to record highs last week, fuelled by strong exports sparked by a weak American currency.
This kept hog prices fairly steady.
The sharp drop in corn prices in recent weeks is lowering producers’ costs of production and might cause them to reduce plans to cut breeding herds. This could result in more pigs than expected in 2009, weakening the price outlook.
Iowa-southern Minnesota cash hogs were $60.50 US per cwt. Aug. 1, about steady with the price July 25.
The U.S. composite pork carcass cutout value climbed to $88.90
Aug. 1, up from $85.25 July 25.
U.S. slaughter for the week ending Aug. 2 was estimated at 2.09 million, down slightly from 2.13 million July 25.
Bison steady
The Canadian Bison Association reported two weeks ago that grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.15 to $2.30 Cdn per lb. hot hanging weight. Heifers were $2.05 to $2.25 per lb. Cull cows and bulls were 90 cents to $1 per lb.
Light lambs down
Ontario Stockyards reported 2,035 sheep and lambs and 108 goats traded July 28. Well-finished lambs were steady but all others were slightly weaker. Sheep and goats were steady.
Beaver Hill Auction in Tofield, Alta., reported 738 sheep and lambs and 112 goats traded July 28.
All classes sold barely steady. There was poor demand for sheep and goats that need finishing.
Lambs lighter than 70 lb. were $89-$110 per cwt. Lambs 70 to 85 lb. were $95-$121, 86 to 105 lb. were $105-$122 and those heavier than 105 lb. were $106-$121.
Rams were $30-$45 per cwt. Cull ewes were $20-$42 per cwt. Good kid goats were $170-$204.
Nannies were $62-$86 per cwt. and mature billies were $100-$125.
