Cattle prices to stabilize
After opening steady, fed cattle prices fell last week, causing weekly averages to fall about $1.50-$2 per hundredweight.
Canfax said ample supplies of cattle were available locally and in the United States Pacific Northwest, meaning U.S. bids were not as aggressive as they have been recently. Other U.S. prices were lower as well. Some producers opted to pass cattle at the lower bids.
Prices May 4 were steers $95-$98.75 per cwt., flat rail $159.40-$163.40 and heifers $96-$98, flat rail $163.10, said Canfax.
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In Manitoba, prices for choice-type cattle hit a new record high of $107 per cwt., while top prices for select cattle remained steady at $102.
There is lots of beef in the pipeline, but demand seems steady, said Canfax.
Some packers cancelled Saturday kills, but should start again this week and prices are expected to hold steady with the lower levels set at the end of last week.
Wholesale beef prices are lower with Montreal steer carcasses expected to be down $1-$2 per cwt. this week.
Calgary wholesales are down $2-$3 in a range of $155-$172.
Canfax said market-ready supplies will be large enough through May and June to keep packers comfortable with inventory.
Demand for fed cattle from the U.S. and Ontario will help keep western markets in line with the rest of North America. The fact that feedlots are current heading into the larger numbers will help with bargaining position.
Slaughter cow prices were mostly steady early in the week but showed weakness later. Average prices were down 50 cents per cwt. compared to the previous week, but are $7-$8 higher than the same time last year.
Demand remains strong for cows to put on grass or breed.
Feeder cattle and calf prices were mostly steady, said Canfax.
Fewer cattle traded in the extreme top end of price ranges, bringing averages down on the lighter cattle. The bottom end of the price range didn’t change. Heavier cattle weighing more than 750 lb. traded steady.
Volumes were similar to the previous week but are expected to drop off significantly over the next couple of weeks as field work becomes the priority.
Canfax said prices are not expected to change much even considering the lower fed market. There simply won’t be enough feeders available to pressure prices.
In stock cow trade, bred cow and heifer trade was weak while pairs were better tested. As with the feeder cattle, quality is a huge factor in price.
Bred cows brought $850-$1,400 with the bulk between $1,100-$1,300.
A few bred heifers were $1,000-$1,200 while cow calf pairs brought $875-$1,875 (mostly $1,400-$1,650).
More hogs killed
Hog slaughter in the U.S. was above year-earlier levels as packers took advantage of the post-Easter increase in hog marketings.
Producers, who had been preoccupied with seeding, were back delivering more hogs. Cash hog prices declined as the week progressed, but U.S. analysts reported that daily lean carcass data show bids actually remained steady, said Manitoba Agriculture.
Iowa-southern Minnesota hog prices (51-52 percent lean, live equivalent) fell from a top of $58 (U.S.) per cwt. early in the week to a range of $42.75-$56.25, mean of $51.24, at week’s end.
However, the average price for the week was still about four percent above the previous week’s average.
It is likely that average prices in Canada will be even higher this week if the demand for pork remains strong, particularly if the Canadian dollar remains at its lower level.
Strong demand in U.S.
WASHINGTON, D.C. (Reuters) – Americans will eat a record 36 kilograms of chicken per capita this year and even more next year, far outpacing consumption of beef and pork, the National Chicken Council said May 8.
“While American consumers are eating an unprecedented 81 pounds of chicken per person this year, consumers say they plan to purchase even more chicken in the months to come,” said Lindy Pilgrim, chief executive of Simmons Foods Inc.
The poll also found that 89 percent of consumers surveyed ate chicken at least once each week, and more than one-third of them ate chicken three times a week.
Chicken consumption per person annually exceeds beef at 31 kg and pork at 23.5 kg, the National Chicken Council said.
