Fed cattle weaken
The aggressive packer buying of two weeks ago led to a surplus of inventory that pressured fed cattle prices lower by $1.25 to $2 per hundredweight last week, said Canfax.
A stronger Canadian dollar and weaker beef demand also added to the pressure.
Steers last week averaged $96.38 per cwt., down $1.95. Heifers averaged $95.56, down $1.20.
Volume dropped 20 percent from the week before at about 21,000 head. Some of the show list was carried to this week.
The cash to futures basis strengthened to $9.73 under compared to $11.59 under last week.
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Exports to the U.S. totalled 9,610 head, up 10 percent from the week before but 23 percent lower than last year.
Packer interest should continue lackluster this week but heading into September, prices are expected to strengthen as the number of market-ready cattle declines, said Canfax.
D1, 2 cows in Alberta were lower at $44 to $59 per cwt. with the average down $2.21 to $52.03.
Slaughter cow and bull exports totalled 3,219 head. Butcher bulls ranged from $50 to $76 and averaged $63.59, down $2.33 from the week before.
Demand for slaughter cows and bulls is expected to weaken as the demand for hamburger declines in late summer.
Beef prices drop
Beef production in the U.S. in July was 2.37 billion pounds, up five percent from last year and cattle slaughter was 3.06 million head, up six percent, said Canfax.
U.S. Choice 600-900 lb. cutouts were $161.52 per cwt., down $3.32 from the week before. Select fell $1.24 to $156.48. Choice cutout values are 13 percent or $18 higher than the same period a year ago and AAA cutouts are 11 percent or $17 higher.
Retailers have met their needs for Labour Day and beef faces stiff competition at the meat counter from pork and chicken.
AAA cutouts were marginally lower than the week before at $178.28, down $1.27 from two weeks ago and AA cutouts were $170.09, down $1.96.
Calgary wholesale prices were steady to lower for delivery this week at $163 to $165.
Price, volume rise
Grass cattle are coming off pasture and producers are taking advantage of current good prices. Dry pastures are also forcing some sales.
Feeder auction volume rose to 62,982 head, up 67 percent from the week before.
The same week a year ago it was 30,325 head.
The steer average price rose $1.24 per cwt. and heifers rose $1.51.
Alberta steers and heifers heavier than 700 lb. fell 22 cents.
Steers lighter than 700 lb. rose $2.33 and heifers in the same range were $2.81 higher. Volume should remain high as grass cattle go to market.
A weaker February live cattle futures contract and stronger Canadian dollar could put pressure on 800 lb. and heavier feeders.
Bred cows were $500-$625 and cow-calf pairs were $600-$1,025.
Hog prices weaken
A larger supply of market-ready hogs and rumours of slowing pork exports caused U.S. hog prices to fall last week.
Iowa-southern Minnesota cash hogs dipped to $62.50 US per cwt., down from $64.50-$65.
The U.S. pork carcass cut-out value fell to $88.86 Aug. 22, down from $94.41 Aug. 15.
U.S. slaughter for the week ending Aug. 23 was estimated at 2.23 million, up from 2.14 million Aug. 16.
Bison steady
The Canadian Bison Association said grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.20-$2.30 per lb. hot hanging weight.
Heifers were $2.10-$2.30 per lb. Cull cows and bulls were 90 cents to $1 per lb.
Lambs steady to better
Ontario Stockyards reported 1,444 sheep and lambs and 84 goats traded Aug.18. Well-finished light lambs sold at a premium.
Other classes of sheep, heavy lambs and goats were steady.
