Packers slow to buy cattle
Fed cattle sales were on average $1-$2 per hundredweight lower last week as a mixed offering of yearlings met a mostly sluggish packer demand.
Offerings were up 11 percent to just over 15,000 head, said Canfax. Carcass weights and yields were the main factors in price.
Alberta prices Feb. 17 were steers $91.50-$92.25 per cwt., flat rail $155.60 and heifers $90.75-$92.80, flat rail $155.65.
Calgary wholesale beef prices are mostly steady for this week with handyweight steers at $154-$169 per cwt. with a few tops to $174. The Montreal price is up $1 to $161.
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The byproduct market was steady but hides are expected to come under some price pressure soon.
Canfax said the holiday-shortened week in Alberta will help reduce the amount of beef in the pipeline, but it also means the packers need fewer cattle to get by. Canfax expects fed cattle prices in the low $90s this week.
Fed cattle supplies are in a few strong hands now and supplies are expected to decrease into March. As lighter weight calves start to show up in the market, a two-tiered price will develop with calves at premiums due to handier weights.
In the United States, fed cattle traded 50 cents to $1 (U.S.) per cwt. lower last week. Feeders were $1-$2 lower and calves were steady. Trade volume was light.
Western Canadian slaughter cows traded mostly steady to 50 cents lower.
The ample supply of grain-fed cows met a mediocre demand. However, the few lean, feeder-type cows traded strong.
The boneless beef market remains sluggish, said Canfax.
Feeder sales were under pressure especially on heavier weights. For example, 800 lb. and heavier steers and heifers were off $1-$3 depending on the region.
Canfax said prices of heavier feeders will likely continue under pressure until profits return to the fed market.
The lighter feeder market will continue strong.
In stock cow trade, bred cows were $650-$1,485 with medium types at $850-$1,200 and good quality cows at $1,100-$1,485.
Bred heifers were $850-$1,470. Cow-calf pairs were $1,150-$1,550 on few sales reported.
Hog prices bounce
Despite relatively stable cash hog prices in the U.S. last week, lean hog and pork belly futures prices were on a roller coaster, plunging limit-down early in the week, but rising by mid week.
Traders were apparently concerned about lower pork prices, the potential for increased hog slaughter and the large premium that hog futures had to cash prices, said Manitoba Agriculture.
However, there was no real basis for the steep drop in futures.
Iowa-southern Minnesota hog prices (plant top, 51-52 percent lean, live equivalent) remained around $44-$44.50 per cwt. (U.S.) for most of the week. On Feb. 18, the range was $33.75-$44.75 per cwt. with a mean of $41.55, up $1.27 from the previous Friday.
The hot competition among Manitoba packers pushed prices in that province well above the U.S. cash price. The Manitoba estimated Index 100 hog price (including premiums) averaged close to $170 per 100 kilograms.
