Fed cattle weaken slightly
Potentially stronger fundamental fed prices last week were overshadowed by poor cash market demand. A relatively stable loonie kept things from getting ugly, reported Canfax.
Steers last week averaged $94.54 per hundredweight, down slightly by 41 cents. Heifers averaged $94.08, down 15 cents.
Sales volumes rose eight percent from the previous week at just under 20,500 head. Some cattle were passed over and will be added to this week’s list, Canfax said.
The cash to futures basis weakened to $15.72 compared to $11.39 last week.
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Exports to the U.S. totalled 12,902 head, up 40 percent from the week before and 28 percent lower than last year.
Retail demand has eased and the beef complex has a large inventory to wade through before buyer interest will improve, said Canfax. Fed offerings are expected to tighten but until cash cattle volumes grow, prices should remain fairly flat.
The increase in fed exports to the U.S. should continue to support domestic bids.
D1, 2 cows in Alberta were slightly lower with prices $1.07 per cwt. lower than the previous week, with a range of $35-$60.
Slaughter cow and bull exports totalled 4,879 head. Butcher bulls were $40-$70 and averaged $59.37, down $3.60 from the week before.
Demand for cows continues to be good for this time of year. There have been record numbers of cows slaughtered and exported so far this year at 490,000 head. The annual 10-year average is 560,000 per year.
Beef prices drop
U.S. Choice cutouts closed at $158.26 US per cwt., down $2.73 from the week before. Select fell $1.72 to $152.22.
AAA cutouts were $176, down $2 from two weeks ago. AA cutout values were $168, also down $2.
Calgary wholesale prices were steady to lower for delivery this week at $161 Cdn.
Price, volume fall
Alberta auction market volume fell nine percent last week to 54,592 head, but remained up from last year’s levels of 33,530 head.
The steer average price fell $1.38 per cwt. and heifers fell $1.91.
Alberta steers and heifers heavier than 700 lb. were $2.16 and $1.42 respectively. Steers lighter than 700 lb. dropped 80 cents while heifers in the same range fell $2.28.
Exports of Canadian feeder cattle to various U.S. destinations were 14,119 head last week, up substantially from 9,045 the previous week.
With feeder volumes increasing to the U.S. feedlots, there is an indication that U.S. feeders are less concerned about the country-of-origin labelling protocol.
Demand for feeder cattle in U.S. feed yards will continue to pull feeder cattle from Canada at higher than expected levels.
Hog prices steady
U.S. Midwest cash hogs traded mostly steady Sept. 5, with some pork plants buying hogs for this week and others well supplied through the end of this week.
Iowa-southern Minnesota cash hogs traded steady at $53 US per cwt., down slightly from $53.50 Aug. 29.
The U.S. pork carcass cut-out value fell to $77.27 Sept. 5, down from $80.26 Aug. 29.
U.S. slaughter for the week ending Sept. 6 was estimated at 2.06 million head, down from 2.22 million Aug. 30.
Bison steady
The Canadian Bison Association said grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.25-$2.35 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
Ontario Stockyards reported 842 sheep and lambs and 74 goats traded Sept. 2.
All classes of well fed lambs sold steady to stronger. Sheep and goats held steady.
