Fed cattle lower
Instability in the U.S. financial sector and fears of a deepening recession drove Chicago October live cattle futures below $101 last week.
A 97 cent Canadian dollar pressured prices north of the border.
Steer prices averaged $92.56 per hundredweight, down 60 cents, while heifers were $91.98, down $1.01.
Canfax said trade has occurred mostly on Wednesdays in the past few weeks.
Heifers accounted for 44 percent of total sales.
Sale volumes were one percent higher than the week before at slightly less than 19,500 head.
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The cash to futures basis strengthened to $11.65 under compared to $13.91 under the week before.
Fed exports to the United States two weeks ago totalled 11,711, down 26 percent from the week before and down 39 percent from last year.
The financial turmoil in the U.S. is masking stronger fundamentals in the fed cattle market.
Packer margins are decent and market-ready supply is tightening while the supply of cattle that packers own is shrinking, Canfax said.
That should support prices, perhaps by $1-$2 heading into October.
Prices for D1, 2 cows in Alberta were $42 to $58 per cwt. with an average of $50.59 for the week, up $1.28.
Slaughter cow and bull exports totalled 3,885 head, down from 4,386 the week before.
Butcher bulls were $44 to $73 for an average of $58.59, down 80 cents.
Canfax expects good demand and steady prices this week.
Beef weakens
U.S. Choice cutouts fell by $2.77 to $158 US per cwt. and Select fell $3.66 to $150.67.
The U.S. Choice-Select spread was $7.33, compared to $6.44 the week before.
Canadian AAA cutouts for the week ending Sept. 12 were $172.49 Cdn, down seven cents. AA cutouts were $167.22, 84 cents lower. AAA cutouts for the same period last year were $161.75 and AA was $159.45.
Feeder prices weaken
Alberta auction market volume fell 17 percent to 54,000 head. Last year 42,000 head traded.
Auction volume in Alberta is up eight percent over the same period last year.
Steers averaged $1.57 per cwt. lower and heifers were $1.47 lower.
Alberta steers weighing more than 700 pounds fell $1.17 and heifers were $1.50 lower.
Steers lighter than 700 lb. were $1.87 lower and heifers were $1.45 lower.
Feeder cattle exports to the U.S. totalled 9,260 head, down from 19,077 the week before and down from 14,861 last year.
The higher Canadian dollar may have cooled feeder exports during the week, Canfax said.
Weights of cattle at auction should fall as more calves move into the mix.
Feeder prices this week should be steady to stronger if the fundamentals drive the market, but the strength of the loonie and the U.S. financial crisis could continue to depress prices.
Bred cows were $600-$675 and cow-calf pairs were $750-$900.
Hog prices rise
Good margins encouraged U.S. slaughter plants to maintain a strong pace, helping to push up cash hog bids to get supply.
Iowa-southern Minnesota cash hogs Sept. 26 were $55 US per cwt., up from $51 Sept. 19.
The U.S. pork carcass cut-out value rose to $76.66 Sept. 19 from $75.74 Sept. 12.
U.S. slaughter for the week ending Sept. 27 was estimated at 2.36 million, up from 2.335 million Sept. 20 and 2.22 million last year.
Bison steady
The Canadian Bison Association said grade A carcasses from youthful bulls in the desirable weight range in Canada were mostly $2.15 to $2.40 Cdn, with sales to $2.50 per lb. hot hanging weight. Heifers were $2.10 to $2.30 per lb. with sales to $2.40.
Cull cows and bulls averaged $1 per lb.
Weight, quality and delivery location affect final price.
Lambs stronger
Beaver Hill Auction in Tofield, Alta., reported 836 sheep and lambs and 165 goats traded Sept. 22.
Demand for feeder lambs is improving. Fat lambs were barely steady. Cull sheep were stronger. Goats were steady.
Lambs lighter than 70 lb. were $110-$126 per cwt. Lambs 70 to 85 lb. were $114-$130, 86 to 105 lb. were $105-$120 and those heavier than 105 lb. were $105-$111.
Rams were $35-$67 per cwt. Cull ewes were $35-$52 per cwt.
Good kid goats heavier than 50 lb. were $150-$210. Thin, light kids were $100-$150. Nannies were $53-$10 per cwt. and mature billies were $110-$175.
Ontario Stockyards reported 2,653 sheep and lambs and 178 goats traded Sept. 22. Well fed lambs sold barely steady while plainer and grass types were under pressure. All sheep traded $7-$10 cwt. lower. Goats held firm.
