Hog, cattle prices improve
Thanks to recent steep price increases, Canadian hog producers should be able to cover their feed costs, if not their total cost of production.
Cash hog prices in the United States rose $4 to $6.50 (U.S.) per hundredweight last week, reaching a high of $32 per cwt. Jan. 15 at Omaha, Nebraska. Higher wholesale pork prices allowed packers to comfortably raise bids.
Weekly hog slaughter is running at less than what was expected once the weather improved, Manitoba Agriculture said. If warmer weather generates more marketings, packers might be less motivated to boost bids and prices could weaken temporarily, the department warned.
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In Manitoba, Index 100 hog prices (including weight premiums) averaged more than $110 per 100 kilograms Jan. 14. Even with the increase, prices are still 12 percent below year-earlier levels.
Workers at Quality Meat Packers in Toronto rejected a new company offer last week prompting the owners to warn they will close their plants rather than sweeten the offer.
“If we were given the choice of increasing our latest offer or closing our plants, we would have to close plants. The situation is really that serious,” Quality Meat president David Schwartz said in a statement.
The dispute has raised the ire of U.S. hog producers who say it has forced more Canadian hogs south, contributing to the oversupply problem in the United States.
Prices stronger than U.S.
The fed cattle market rose last week, with the weekly average up $1.75-$2.15 per hundredweight. The strong basis continues to keep Canadian prices higher than in the United States, said Canfax.
Prices on Jan. 14 were steers $89.50-$91.75 per cwt. and heifers $90-$92.60.
Wholesale beef sales were better than some packers’ expectations. Calgary handyweight steers sold in a range of $149-$156.
Canfax said producers are keeping current and carcass weights are dropping.
With fewer yearlings on feed this winter due to smaller placements, Canfax said the tight basis will remain through much of the first quarter.
The fluctuating Canadian dollar keeps the forecast clouded, but expect strong prices in general.
Cow prices rose early last week but retreated after buyers met their needs from a surge in volume offered. D1, 2 cows were $3-$5 per cwt. higher compared to the previous week. The outlook is for steady prices, said Canfax.
Feeder prices last week were steady to $3 per cwt. higher than the pre-Christmas period.
Canfax said feeder prices might increase this week.
“There are a lot of empty feedlot pens and operators have been wary of purchasing until now,” Canfax said.
In stock cow trade, bred cows had a price spread of $500-$1,250. Bred heifers ranged from $550-$1,050. Few cow-calf pairs were quoted.
