Fed cattle prices down
The jitters in the American cattle market washed into Canada and
pressured fed cattle prices down last week.
The U.S. Department of Agriculture’s cold storage report didn’t help,
showing 19 percent more beef in storage at the end of February than a
year ago. That was on top of the foot-and-mouth disease scare and the
price-depressing U.S. cattle-on-feed report the week before.
Feedlot operators initially shunned low packer bids, but by the end of
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the week worry was causing them to give in. In Alberta, more than
20,000 head sold last week, up 32 percent from the week before, Canfax
said. This was the largest movement since October, Canfax said.
Calves increased their share of the market.
Average fed cattle prices lost more than $5 per hundredweight on a live
basis and $10 on a carcass basis.
Some U.S. buying action was apparent, but the orders appeared to fill
early with the large offering.
Alberta prices March 21 were steers $107.55-$108.75 per cwt. and
heifers $107.75-$108.25, flat rail $181, Canfax said.
Even with reduced kill, many packers still have boxes of beef to sell
at the end of each week.
Calgary wholesale beef prices this week are $5 lower at $178-$194 per
cwt. on handyweights and $175-$178 on heavies.
The Montreal market is steady to $2 lower at $189.
With the Good Friday holiday, this is a short kill week, but it should
be the last for some time.
Canfax said kill levels must return to normal soon to move the finished
calves through the system on schedule.
Forward contracted and grid numbers seasonally pick up into April,
which may give packers additional inventory before heading into the
marketplace.
The recent price drop could be reversed after Easter, when consumer
demand usually improves, particularly for more expensive beef cuts. The
U.S. Memorial Day weekend is usually the “official” start of the
barbecue season, but it often begins much earlier if the weather is
good.
Feeders also fall
Feeder cattle markets followed the fed market lower. Steers were
$1-$4.75 per cwt. lower while heifers traded $2-$3.75 lower.
Volumes were down 25 percent from the previous week at 39,000 head, a
result of cold weather and the lower prices. Compared to the same week
last year, volume was only one percent lower. Slaughter cows traded
$1.25 per cwt. lower, averaging $67.15.
Canfax expected the pressure would continue into this week on most
classes of feeder cattle.
In stock cow trade, bred cows were $850-$1,450 with the bulk of the
trade at $1,100-$1,350. Bred heifers were mostly $1,100-$1,300, but the
overall range was $850-$1,400.
Cow-calf pairs were $1,060-$1,550 with most sales at $1,200- $1,400.
Hog prices drop
The U.S. pork cutout value decreased again last week.
Hog supplies were ample for packers’ needs and hog prices fell during
the week. Nearby lean carcass futures’ prices decreased again by more
than $2 US per cwt. from the week before.
The USDA cold storage report showed eight percent more total pork and
21 percent more bellies in storage at the end of February than a year
ago.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent
lean, live equivalent) declined from $36.81 per cwt. on March 18 to
$35.87 on March 21. On average, the week’s hog price was about five
percent below the previous week’s price.
