U.S. pig prices go higher
Higher wholesale prices for some cuts increased the U.S. pork cut-out value, despite reduced demand for pork loins, ribs and butts.
Packers continue to slaughter hogs at well above year-earlier levels, said Manitoba Agriculture.
Increased sow and gilt slaughter so far this year has added to the overall kill, which averaged about 1.8 percent higher for January and February compared to an expected decrease of about one percent from year-earlier levels.
This has meant hog prices have not increased as much as expected. However, any further reduction of the breeding herd in the United States can only help hog prices later in the year.
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The U.S. Department of Agriculture March 1 hog inventory report will indicate if herd liquidation continued in the first quarter 2003.
While hog prices were down at the beginning of the week, packers were willing to pay more as the week progressed to get the hogs they needed.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) increased from $35.62 US per hundredweight on Feb. 24 to $36.45 Feb. 27.
On average, the week’s hog price was less than one percent below the previous week’s price.
The Canadian dollar hit two-year highs last week.
An increase in the dollar to 67 cents from 65.3 cents in a little over two weeks translates into a 2.6 percent decrease in Canadian hog prices.
Cattle prices rise
Fed cattle sales were $3-$3.50 per cwt. higher as Canadian packers chased a tight supply of cattle, Canfax said.
A narrow basis and higher loonie meant U.S. interest was limited.
Owners sold cattle aggressively as margins remained positive and market-ready supply became tighter.
Volume traded in Alberta almost doubled to more than 19,000 head.
Alberta prices Feb. 27 were steers $114-$116.90 per cwt. and heifers $112.75-$118.75.
Fed prices should remain steady to firm into early March, said
Canfax.
Market-ready supplies will remain tight through the spring and weights will fall into April.
With the high price for the U.S. market likely already reached, basis levels will be the critical factor in determining prices through the second quarter.
Wholesale beef prices are steady to weaker in Montreal where the steer price settled at $189-$190 per cwt. The Calgary handyweight steer market is $182-$185. A strong hide market supported byproduct values.
Feeders popular
The lower futures market and higher Canadian dollar couldn’t fizzle the feeder cattle trend, Canfax said.
Feeder prices were mixed with light cattle steady to $2 per cwt. lower and heavier feeders steady at the start the week but higher later.
Volumes were up 11 percent compared to the week before and 30 percent smaller than last year.
Southern markets saw stronger prices on 750 lb. and heavier feeders than northern ones, Canfax said.
Buying action was mostly local as feedlots looked to fill pens vacated by finished yearlings.
Slaughter cow prices were 50 cents to $1 per cwt. higher with markets barely steady early in the week but stronger by the close.
March will likely see feeder numbers taper off. A solid fed cattle market will also help to support feeder prices into March. Basis levels are running extremely narrow for this time of year due to the tight supplies.
In a light offering, bred cows were $600-$1,450 with most at $900-$1,300 and bred heifers were $700-$1,470, with most at $950-$1,350. A handful of pairs sold at $900-$1,300.
