Little change in fed prices
Fed steer prices were steady last week while heifers gained $1 per hundredweight, mostly due to a better quality offering.
Trade eased off by the close of the week as packers felt more comfortable with their inventory heading into this week, said Canfax.
Volume sold was up seven percent from the previous week at more than 24,000 head.
Demand was mostly local, but a few cattle went to the United States despite the strength of the Canadian dollar.
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The spot Canada-U.S. basis was near par early in the week, but a weaker Canadian cash market later caused the basis to widen slightly to $4-$5 under.
Alberta prices May 8 were steers $104-$107 per cwt., flat rail $173.65-$177.50 and heifers $177.75 on a flat rail basis.
Beef sales have been relatively good heading toward the Victoria Day holiday weekend, normally the start of the barbecue season, Canfax said.
Chain speeds in Alberta have slowed considerably due to muddy cattle in the system.
Wholesale beef prices have been fairly steady, but they are expected to reflect the strong dollar as time goes on.
The Montreal price is steady at $184 for this week, while Calgary is mostly steady at $170-$174 on steers.
Price pressure attempted
Canfax said packers have attempted to pressure prices lower because they need fewer cattle for the short holiday week. So far they have been unable to compensate for the stronger dollar and will attempt to make up some lost ground.
Packers will be up against cattle feeders who can afford to wait.
Feeder prices varied
Feeder prices in Alberta were mixed.
Steers were mostly steady to lower, with 500-600 pound steers down $1.50 per cwt. and steers heavier than 800 lb. down 25-75 cents.
Heifer prices were generally 50 cents to $2.50 lower, with the largest decrease in heifers heavier than 900 lb.
Light feeder volume was due to the wet weather and tighter supplies.
Volume at Alberta auction markets was just under 22,000 head, down 34 percent from the week before and 32 percent smaller than the same week last year.
Slaughter cows traded lower, Canfax said, partially because of the stronger Canadian dollar.
D1, 2 cow prices averaged $1.67 lower at $59.35 per cwt.
Mud this week could keep feeder sale volumes small and prices under slight pressure, particularly on heavier feeders.
Lighter, grass-type cattle should see strong prices, thanks to better moisture and pasture conditions.
In stock cow trade, a few bred cows and heifers traded at $700-$1,450.
Most bred cows traded at $900-$1,150 while most heifers sold at $850-$1,100.
Cow-calf pairs were $800Ð$1,690, with most at $1,050-$1,400.
Fewer cattle on feed
The number of cattle on feed in Alberta and Saskatchewan on May 1 was down 31 percent from last year at 676,016 head, a difference of slightly more than 300,000, Canfax said.
Placements in April were up 37 percent from last year at 182,343 head, a reflection of this year’s reduced feeder export numbers. By this time last year 169,000 head had left Western Canada. This year the figure sits at 86,000 head.
Compared to April 2002, there was an increase of 44 percent in cattle weighing less than 600 lb., a decrease of 12 percent in the 600-699 lb. class, an increase of 87 percent in the 700-799 lb. group and a 22 percent increase in the 800 lb. and heavier group.
Marketings were down three percent in April, but that was considered strong, given the smaller number of cattle in feedlots. It reflects the feeding sector selling earlier due to better profits.
Fed cattle exports were down 16 percent in April while fed slaughter was up one percent from April 2002.
American analysts expect this week’s U.S. cattle-on-feed report will also show strong placements in April.
Hog belly prices rise
Hog bellies reached near-record prices last week due to smaller belly stocks, the rising popularity of belly meat in upscale restaurants and the normal seasonal increase in bacon consumption.
Belly prices are more than 50 percent above last year’s low level.
Hog prices continued to rise seasonally, Manitoba Agriculture said.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) started the week at $42.45 US per cwt., climbed to $43.64 per cwt midweek, and decreased slightly to $43.62 May 8.
The week’s hog price averaged almost four percent above the previous week’s price and was 27 percent above the average a year ago.
Lean hog futures prices also rose.
Higher hog prices and tighter margins have meant Manitoba packers are slaughtering fewer hogs each week than earlier in the year. But slaughter levels are still well above last year.
For the first four months of 2003, Manitoba slaughter plants processed 1.65 million hogs, an increase of 13 percent from the same period in 2002.
