Fed markets lower
The fed cattle market dropped $1.50-$1.75 per hundredweight compared to the previous week, Canfax said.
The weaker loonie helped limit the fall.
Steers averaged $93.14 per cwt., down $1.40 and heifers were $92.31, down $1.77.
Rail prices for steers fell $2.35 and heifers fell $2.99.
Sale volumes were 11 percent higher than the week before at just under 23,000 head.
The cash to futures basis weakened to $16.89 under compared to $15.72 under the week before. The basis is now $3 wider than the five-year average.
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Exports to the United States totalled 12,803, down 100 head from the week before and 18 percent lower than last year.
North American beef demand normally drops at this time of year, Canfax said.
The continued reduction in market-ready fed supply will add stability to prices but price improvement will depend on improved beef demand. This could take two to four weeks, Canfax said.
D1, 2 cows in Alberta saw improved demand with prices at $38-$54 per cwt. with an average of $45.51 for the week, $1.78 higher than the week before.
Canadian exports of slaughter cows and bulls were 4,377 head.
Butcher bulls were $50-$97 and averaged $60.97, $1.43 higher. Canfax expects steady volume and prices this week.
Beef rallies
U.S Choice cutouts rose $1.67 US to $160.08 per cwt. Select rose $1.84 to $153.84.
Choice loads totalled 644 compared to 537 loads the week before. There were 651 Select loads compared to 453.
Canadian AAA cutouts for the week ending Aug. 22 were $173.26 and AA cutouts were $170.82, Canfax said.
The Calgary wholesale price for delivery this week was slightly lower at $160. The Montreal wholesale was steady at $169.
Feeders strong
The feeder steer price average rose 18 cents per cwt. and heifers were 51 cents higher, Canfax said.
Auction market volume for the week was 12 percent lower than the week before at 48,168 head.
Canfax said there have been high auction volumes totalling 300,000 head in Alberta over the past six weeks. Last year in the same period 220,000 head traded.
Alberta steers weighing more than 700 pounds rose eight cents and heifers rose 10 cents.
Steers lighter than 700 lb. were 25 cents higher and heifers in the same class were 83 cents higher.
Canadian feeder cattle exports to the U.S. two weeks ago totalled 15,914 head, up from 14,119 the previous week and 10,440 in the same period a year ago.
Feeder cattle exports are rising as American feeders see value in Canadian stock despite the expected costs associated with the country-of-origin labelling law, Canfax said.
Auction volumes should begin to decline.
Falling fed cattle prices will put downward pressure on feeder prices, but the weaker Canadian dollar should offset the weakness. Also, fall feedgrain prices will support feeder values.
Bred cows were $400-$650 in light trade. Cow-calf pairs were $700-$800.
Cattle on feed
There were 689,256 cattle on feed in Saskatchewan and Alberta Sept. 1, a decline of 13 percent from the same time last year, Canfax said.
There were 674,735 cattle on feed Aug. 1, down 16 percent from the same time last year.
Placements in August totalled 1,944,015, an increase of six percent over last year.
This higher placement is a reflection of the large number of grass cattle that hit the market in the last half of the month.
Yearlings recently have been placed two to four weeks earlier than 2007 as grazing conditions deteriorated, Canfax said.
Generally, 2008 summer placements have trended consistent with 2007.
Marketings in August were 168,314, down two percent from last year. Marketings seem low relative to placements. This can be explained by the strong pace of feeder exports through most of the year.
Other disappearance totalled 10,180, a 23 percent decline.
Hog prices weaken
Weaker pork prices and abundant hog supply pressured U.S. hog prices.
Iowa-southern Minnesota cash hogs Sept. 12 were $53 US per cwt., about steady with the previous week’s close.
The U.S. pork carcass cut-out value fell to $75.74 Sept. 12, down from $77.27 Sept. 5.
The week included an unofficial record one-day slaughter Sept. 10 of 437,000 head compared to 436,647 set Dec. 20, 2007.
U.S. slaughter for the whole week ending Sept. 13 was estimated at 2.31 million, up from 2.05 million Sept. 6 and 2.23 million last year.
Bison rise
The Canadian Bison Association said tight supply led to a five cent increase at the top end of the A1 bull and heifer price range.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were $2.25-$2.40 per lb. hot hanging weight. Heifers were $2.10-$2.35 per lb.
Cull cows and bulls were 90 cents to $1 per lb.
The U.S. Department of Agriculture reported that August prices for young bulls at plants were $225-$245 US per cwt. with a weighted average of $236.62.
Young heifers were $200-$240 with an average of $228.95.
Aged bulls were $150 and aged cows were $135-$145 for a weighted average of $142.74.
Lambs steady to higher
Ontario Stockyards reported 2,209 sheep and lambs and 143 goats traded Sept. 8.
Well-finished light lambs saw higher prices. Other classes of sheep, heavy lambs and goats were steady.
Beaver Hill Auction in Tofield, Alta., reported 1,074 sheep and 131 goats traded Sept. 8.
Hair lambs to 69 lb. were $95-$110 per cwt., 70 to 85 lb. were $92-$105, 85 to 105 lb. were also $92-$105, 106 lb. and heavier were $90-$100.
Ewes were $25-$38 per cwt., rams were $35-$49, bred ewes were $50-$60.
Ewe-lamb families were $105-$145 per unit.
Doeling kids to 49 lb. were $150-$163 per cwt., 50 to 69 lb. were $169-$187.50, 70-90 lb. were $131-$157. Billy kids to 49 lb. were $180-$195, 50 to 100 lb. were $187-$200.
Nannies were $65-$79 and billies were $111-$155.
