Volume hurts fed prices
Large volumes of fed cattle hit the market midweek, pressuring prices $2 per hundredweight lower on steers and $1.60 lower on heifers, said Canfax.
About 27,000 head traded. More calves were in the mix.
Alberta prices April 7 were steers $80.45 per cwt., flat rail $136.20-$138.30 and heifers $81, flat rail $137.50-$139.
The increased volume allowed packers to increase inventory, which might pressure prices lower. On the other hand, all plants should be running full out and with the weather warming and barbecue season approaching, demand should increase, Canfax said.
Read Also
USDA’s August corn yield estimates are bearish
The yield estimates for wheat and soybeans were neutral to bullish, but these were largely a sideshow when compared with corn.
Canadian boxed beef cutout prices fell two weeks ago as packers attempted to move product that was building up in the system.
The AAA price fell $3.60 per cwt. while AA fell $4.90, widening the spread between the two, which follows the seasonal pattern as calves come on stream.
U.S. cutouts gained about $2 US on Choice, rising to $154.67 and Select was up about $1 to $141.93. The Choice-Select spread at $13 has widened considerably in recent weeks.
The 74,000 head killed in Canada two weeks ago was smaller than expected but some plants were installing new hide pullers causing disruptions.
The Calgary market for this week’s delivery is mixed with steers quoted at $141-$145 Cdn.
Feeder prices weaken
Alberta feeder auction market volumes rose 77 percent with about 47,000 trading, said Canfax.
The larger volume coupled with a lower fed market resulted in weaker feeder prices.
Steers 500-700 lb. fell $1.25-$1.50 per cwt. from the week before, while 700-900 lb. and heavier traded steady to 50 cents lower.
Heifers 500-700 lb. were steady to $1 lower and 700-800 lb. rose 75 cents. Heifers 800-900 lb. and heavier fell by 25 cents-$1.
D1, 2 cows fell $1.25 and butcher bulls were $2.50 lower.
Canfax expects volumes will hold steady or increase as producers try selling into the grass market.
Saskatchewan volumes should rise now that producers can trade their set-aside calves. However, they still cannot be slaughtered until January.
Feeder prices will be affected by the seasonal downtrend in the fed market.
Stock bred cows were $400-$875, while cow-calf pairs, depending on quality, were $400-$1,100 across Alberta.
Cash hogs steady
U.S. live hog prices were relatively steady last week but packers’ profit margins were squeezed as the wholesale pork cut-out price dropped by about $2.57 US per cwt. to $68.22, said Manitoba Agriculture.
The average Iowa-Minnesota daily direct hog price (51-52 percent lean carcass converted to live weight) was $52.56 US per cwt. on April 7.
Hog futures fell ahead of the U.S. International Trade Commission ruling that imports of Canadian hogs did not harm U.S. producers. The worry was that the ruling would increase the number of hogs imported from Canada, but the market regained some ground April 8 when the U.S. Department of Agriculture increased its projection for American pork exports in 2005 to 2.53 billion lb. from 2.285 billion.
U.S. hog deliveries could slow this week if producers focus on spring fieldwork. That could firm hog cash prices.
For the week ending April 1, Manitoba five kilogram pigs saw top bids of $72 Cdn per pig while contract prices saw highs of $47.52 per pig. Spot prices for 23 kg pig prices were to a high of $105.83 per pig and top prices for contracts were $100.36 per pig.
The U.S. national direct delivered prices for five kg pigs (converted to Canadian dollars) were $38.42-$70.56 per pig and 23 kg pigs were $68.12-$107.05 per pig.
Lamb prices dip
Ontario Stockyards Inc. reported 1,566 sheep and lambs and 254 goats traded. All classes of lambs saw slightly lower prices. Sheep and goats sold steady.
