Hog prices trend down
Canadian hog prices fell last week in response to lower American prices.
Retailer demand for pork in the United States increased following the May 27-29 Memorial Day weekend. Despite higher wholesale pork prices at mid-week, packers were unwilling to raise their bids.
Iowa-southern Minnesota hog prices (51-52 percent lean, live equivalent) decreased during the week to $40.75-$52.50 per hundredweight. on June 2 with a mean of $48.02 (U.S.), down $1.23 from a week earlier.
Hog prices usually peak in late June-early July due to the seasonal decline in hog marketings, said the Manitoba Agriculture weekly livestock report.
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Because the rally this year was earlier than usual, the price peak may not be quite as pronounced as in the past, but prices are still projected to rise by about 10 percent.
Strong dollar lowers price
Fed cattle prices closed last week $1.50-$2 per cwt. lower than the week before.
Part of the drop was due to the strengthening Canadian dollar. United States interest was limited compared to previous weeks, but cattle were bought as the market trended lower.
Prices June 1 were steers $92.05-$94.75 per cwt., flat rail $153.90-$155.90 and heifers $91.25-$94.35.
Wholesale beef prices followed the cash market lower. The Montreal price is $159-$160 per cwt., down $3-$4. The Calgary market also fell $3-$4 with handyweight steers at $145-$164.
Carcass weights are getting heavier, said Canfax. Steers set their seasonal low at 765 pounds about six weeks ago, but since then are up 25 lb. to 790. Last year, cattle heavier than 790 lb. were not seen until July.
Canfax said the value of the loonie could be a huge factor in prices through June.
Western cattle supplies are large enough that a $8-$10 under basis level will prevail through June.
U.S. cash prices could hold steady for a week or two, meaning steady prices in Western Canada, but that is assuming no more movement in the exchange rate.
Slaughter cow prices fell because of increased volume due to the previous week’s high prices and because of dry pasture.
Averages were $3-$4 per cwt. lower but many sales saw even larger decreases and prices might slip further.
Most D1, 2 cows traded from $60-$67.
Feeder cattle prices were steady on average volumes for this time of year.
Some producers decided to sell calves or yearlings to take some profit, instead of holding them through the summer.
Those looking for grass cattle seem willing to buy anything they can find, said Canfax. Even if fed cattle prices edge lower, feeder and yearling volumes will be small enough throughout the summer that their prices shouldn’t change much, Canfax said.
Good quality cattle still demand near record high prices.
Very dry conditions in some areas are still a concern.
In stock cow trade, bred cows sold from $825-$1,400, with bred heifers from $800-$1,200 on light sales. Cow-calf pairs sold from $1,000-$1,800.
