Fed cattle prices increase
Fed steers and heifers gained $2.25 per hundredweight last week with
averages between $92.50-$93.
Trade was active all week but the high prices occurred June 19, said
Canfax. Demand came from all directions – the Prairies, Ontario and the
United States.
Western packers appear to have extended their live inventory although
kills have been large recently.
Volume offered was more than 25,000 head, down four percent from the
week before but well over volumes of a year ago. Only a few cattle were
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Alberta prices June 20 were steers $91-$93 per cwt., flat rail
$151.95-$153.65 and heifers $91.25-$93.45, flat rail $151.55-$153.50,
Canfax said.
Wholesale beef prices in Calgary are steady at $147-$161, with most at
$147-$151 while the Montreal price is steady to $2 lower at $157-$160.
The kill two weeks ago climbed again with 75,421 head killed
Canada-wide and 55,303 in Alberta.
Given today’s retail beef prices and the high level of beef production,
demand is obviously good.
Some packers reported higher hide prices.
The market is approaching a short kill week at the beginning of July.
Prices should continue firm in the short run but could lose a dollar or
two in early July, said Canfax. The stronger Canadian dollar also needs
to be monitored.
In late July and August, marketings should start to fall in Western
Canada if reports of fewer cattle on feed are correct.
U.S. feeders down
The U.S. Department of Agriculture reported June 1 on-feed supplies in
the seven major feedlot states were 98 percent of a year ago compared
with the average trade estimate of 97 percent.
It reported May placements at 95 percent of year ago compared with the
trade average of 92.8. May marketings were 99 percent compared with the
trade average of 99.3.
Canadian feeder cattle prices saw a mixed trend with lighter animals
seeing lower average prices and the heavier weights gaining ground.
Feeders under 600 pounds were $1-$4 per cwt. lower while the heavier
weights were steady to $2 higher.
The 800 and 900 lb. cattle gained more late in the week, which will
show up in next week’s averages.
Volumes through auction markets were again large at 30,000, a 44
percent increase over the previous week and 59 percent higher than a
year ago.
A key factor in the big run is the drought influenced sales of cow-calf
pairs in the northeastern part of Alberta.
Cull cows gained $2 per cwt. due to stronger packer demand.
Canfax said feeder cattle look like they will hold firm to higher in
the short run. Volumes will likely be small in July and stronger fed
cattle prices will also help the trend.
The 800 and 900 lb. basis usually strengthens heading into August and
it appears this year will see the trend continue.
The number of cow-calf pairs on offer remained well above the seasonal
normal and met a good buyer demand. Often pairs are being split and the
cows and calves are selling separately.
Pairs are moving into the southern, wetter part of Alberta.
Bred cows and bred heifers were $700-$1,100, with most at $900-$1,100.
Pairs sold from $800-$1,500 with most at $1,200-$1,400.
Pork selling well
Retail demand for most pork cuts, especially loins, bellies and ribs,
has improved.
Much higher wholesale pork prices, together with the seasonal decline
in market-ready hogs, encouraged U.S. packers to raise their bids.
The decreased supply may also be due to producers holding back hogs as
they wait for prices to rise.
Hog weights have declined recently, but that may change if producers do
not stay current with sales.
Hog prices increased throughout the week. The Iowa-Minnesota daily
direct hog price (plant mean, 51-52 percent lean, live equivalent) rose
from $37.96 per cwt. on June 17 to $41.29 on June 20. On average, the
week’s hog price was about six to seven percent above the previous
week’s price.
Improved retailer demand for pork is slowly reducing the ample supplies
of pork in the U.S.
USDA’s cold storage report for the end of May showed that pork stocks
were 29.6 percent larger than a year ago, but were down by 3.6 percent
from April 30.
