The Rural Voice, 1988-10, Page 22ott.
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20 THE RURAL VOICE
BEEF CATTLE MARKET REPORT
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by Elaine Pym
Ontario Cattlemen's Association
SLAUGHTER CATTLE
Slaughter cattle prices (September
22) sit at about the same level as they
did a month ago. During that time
period, however, prices did not remain
steady — they rose and fell. Late
August saw strengthening prices in all
markets as supplies of cattle were
fairly tight and the beef trade was
showing improvement.
By the second week of September,
receipts of cattle on the markets had
increased substantially as producers
pushed cattle to market before the end
of the third quarter (for stabilization).
As a result, markets were flooded and
prices were pressured downward.
Generally, cattle have been coming
to market in fairly good condition;
however, there seem to be more
heavyweight cattle on the market.
Overfinished cattle have been reasona-
bly plentiful but orders from American
buyers have kept these fatter cattle
cleaned up.
OTHER MARKETS
Slaughter cattle prices in Western
Canada have been following similar
trends, with a rise in prices followed
by heavy supplies and price pressure.
However, the Western market reacted
a little bit faster on the upswing than
our market, resulting in a very narrow
Toronto -Calgary basis since mid-
August.
During that time, basis ranged
from S2.61/cwt. to 54.50/cwt.,
whereas a more normal basis would be
S5-10/cwt.
U.S. markets showed similar trends
too, but the reasons are a little
different. Good beef trade seemed to
strengthen prices earlier, but high hog
slaughter levels in the past couple of
weeks have eased cattle prices
somewhat. U.S. prices have been
abnormally higher (in Cdn. equivalent
terms) than our market prices for an
extended period. But the recent
strength in the Canadian dollar
combined with lower markets has
narrowed the margin between Omaha
and Toronto prices.
REPLACEMENT CATTLE
Replacement cattle prices have
seen very little change over the last
month, but appear to be strengthening
gradually. At the onset of the fall
stocker run, demand seemed to be
good. Prices traded a little easier at
the end of September, but this was due
mainly to weakness in the slaughter
cattle market.
Receipts to date have mainly been
shortkeeps and yearlings, although
calves are appearing on the market
gradually. Prices have generally been
trading about S10-S12/cwt. lower than
at the same time last year for
shortkeeps and yearlings while calves
are about 512-S15/cwt. lower than last
year.
OUTLOOK
The clean-up of backlogged cattle
indicates higher prices for after mid-
October and for November. The beef
trade may be somewhat slower until
the Thanksgiving holiday, then should
pick up again shortly after. By that
point, receipts of slaughter cattle
should be back to more normal levels
and the prices of all classes of cattle
will very likely strengthen.0