Quality brings reward
The fed cattle market was strong again last week with averages $1-$2 per hundredweight higher than the week before.
Heifers saw the biggest increase mostly due to top quality in the week’s offering, said Canfax. Prices traded above $100 for most of the week on the top quality types.
Longer days on feed and cattle that would have a higher capacity of AAAs brought the premium prices.
More “green” calves are showing up in the mix and are tending to trade closer to the average, said Canfax.
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Alberta prices March 23 were steers $97.75-$100 per cwt., flat rail $166.85-$167.85 and heifers $98.20-$98.75, flat rail $167.25-$167.50.
Beef movement was steady. Canfax said some retailers are looking at a more wait-and-see attitude for their April purchases. Wholesale beef prices are generally steady.
The Montreal price was $168 while Calgary was $167-$177, with a top of $180 on handyweight carcasses.
Producers have been willing to sell ahead of schedule to take advantage of strong prices. Carcass weights have dropped as a result. This will help producers’ bargaining power into April, although supplies will increase into the second quarter.
The outlook is for mostly steady prices.
Slaughter cows sold $1-$2 per cwt. higher on good demand. The market strengthened during the week. There were fewer offerings.
Most D1,2 cows traded from $57-$63 with sales topping $65-$67. The outlook is for steady to higher prices.
Feeder cattle were steady to $2-$3 higher on almost all weight categories. Demand outpaces volume.
The stronger fed cattle market also helped. Compared to March 1999, feeder prices are $35-$45 per cwt. higher on the light cattle while heavier feeders are $14-$20 higher.
Volumes were down 28 percent from the previous week, at just over 41,000 head reported sold. Compared to the same week last year, which saw 38,500 head, volumes were up seven percent.
Canfax said the market is wondering how high prices can go, and for how long. For the short term, expect fully steady to stronger prices, it said.
In stock cow trade, bred cows were $825-$1,500. Good quality cows were $1,200-$1,500 and bred heifers $825-$1,400. Cow-calf pairs were $950-$1,600.
Easter demand
Cash hog bids in the United States climbed early and then fell back last week.
However, with good pork cutout movement and higher wholesale prices, a major price decline is unlikely. With Easter approaching, ham will be in good demand.
The Iowa-southern Minnesota hog price (plant 51-52 percent lean, live equivalent) on March 24 was $36-$48 (U.S.) per cwt. with a mean of $44.16, down 52 cents from the previous Friday.
The average Manitoba Index 100 hog price (including premiums) was estimated at $167.80 per 100 kilograms.
The U.S. March hogs report pegged the breeding herd at 95 percent of a year earlier, one percent below the trade estimate. The market herd was 97 percent of a year ago, one percent larger than the trade estimates.
For more on the U.S. hog market, see page 42.
