Heavier cattle pay less
Fed cattle markets were mainly steady last week.
The offering was dominated by cleanup type cattle, so weights and yields were factors in the end price, said Canfax.
Carcasses weighing more than 900 pounds were discounted by 20-25 cents per hundredweight.
A few feedlots have now finished their yearling cattle and are starting into the calves placed early last fall. These handier weight cattle will undoubtedly be welcomed by packers.
Canfax said the negative talk surrounding last week’s United States cattle on feed report fell off by the end of the week.
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U.S. boxed beef movement improved considerably in the second half of the week and the futures market gained back most of its losses.
Alberta prices Feb. 24 were steers $91.30-$93.40 per cwt., flat rail $154.65-$155.85 and heifers $89.75-$92.25, flat rail $152.50.
Beef movement is considered quiet to fair depending on region. The Montreal price is down $3 per cwt. for this week to $158 while Calgary wholesales are down $1 to a range of $153-$168 with tops to $173.
For the first time in many weeks, carcass weights are dropping to levels near a year ago.
Weights will continue their seasonal drop further into March and April as more calves dominate the slaughter mix.
Slaughter cow trade was generally steady. Lean, feeder-type cow supply remained tight and prices were strong. Most D1, 2 cows traded from $55-$60 per cwt. with buyers looking for the leaner cows.
In the feeder cattle market, heavy animals were discounted. In many cases, 800-900 lb. steers had a hard time breaking $112 in many sale barns.
Quality of the heavier weight feeders was mostly good, but some buyers said top quality cattle volumes increased but sold for less money.
Canfax said pressure will continue on the heavier feeder cattle but lighter types will be steady.
Prices could firm up in coming weeks if fed cattle prices improve.
In stock cow trade, bred cows were $660-$1,500 with medium types $400-$1,200 and good quality cows mostly $1,100-$1,500.
Bred heifers were $800-$1,310. Cow- calf pairs were $900-$1,550 on a few quotes.
Pork prices drop
Despite some nervousness about market direction among hog futures traders, the U.S. cash hog market continued to improve early this week. By mid-week, packers had lowered wholesale pork prices, mainly for bellies, loins and butts, to compete with cheaper beef prices.
Sales of pork increased and packers were willing to raise hog prices slightly on Feb. 24.
Iowa-southern Minnesota hog prices (plant top, 51-52 percent lean, live equivalent) were a little above $45 per cwt. all last week.
On Feb. 25 the range was $33.25-$44.75 with a mean of $41.20, down 35 cents from the previous Friday.
Manitoba Agriculture said if beef prices continue to decline, some analysts predict the coming seasonal rise in pork prices may be smaller than expected.
Manitoba hog prices were closer to the U.S. price equivalent this week as packer competition cooled.
The average Index 100 hog price (including premiums and bonuses) for the week was estimated at $160 per 100 kilograms.
