Fed cattle prices up
Fed steers were $1.75 per hundredweight higher last week while heifers
were up $2.25.
Despite highly volatile trade on the live cattle futures market, the
Canadian cash market was steady.
The foot-and-mouth disease testing in Kansas March 13 made cattle
futures drop. Uncertainty on the trading floor continued the next day
even after all FMD tests came back negative.
Volumes were almost steady with last week, with 15,200 head traded.
More calves were in the mix. Buyers were mostly local although some
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cattle moved south.
Alberta prices March 14 were steers $114.50-$115.25 per cwt., flat rail
$188.90-$191.40 and heifers $111.50-$114.50, flat rail $189.90-$190.75.
Beef sales are expected to be slow until after Easter. Most packers are
reducing kills by cutting shifts or work days until then.
Carcass weights have decreased to 839 pounds from 850 lb. one month
ago. This will help reduce the surplus meat in the system.
Wholesale beef prices strengthened with the recent live cattle rally.
Calgary wholesale prices rose $5-$7 on handyweights at $183-$199 and
were $3-$6 higher on heavy animals at $178-$183. The eastern Canadian
market is up $7-$8 at $189-$191.
Canfax expects prices to be steady again this week.
Feeder prices strengthen
Feeder prices were stronger due to a combination of higher fed cattle
prices, smaller feeder volumes and a lower Canadian dollar.
Steers were mostly $1.50-$2.50 per cwt. higher. Heifers were
$1.50-$3.75 stronger with the largest gains on those less than 700 lb.
Large volumes of feeders are being exported. So far this year, 116,667
head have been sold to American buyers.
Volume through auction market trade was 52,700 head, up 84 percent from
the previous cold week but 20 percent smaller than the same week last
year.
Slaughter cows were almost $3 per cwt. stronger, with the most increase
on grain-fed cows with more days on feed.
Canfax expects the feeder trade to be steady to slightly stronger on
some classes over the next few weeks.
Stronger fed cattle prices should continue to influence feeder prices.
Also, some areas are getting snow, prompting some buyers to think about
buying calves to go on grass in the spring.
In stock cow trade, bred cows and heifers were steady at $850-$1,450.
Most cows traded a bit higher than heifers, with most at $1,200-$1,350.
Most bred heifers were $1,100-$1,300. Cow-calf pairs were $1,100-$1,500.
Cattle on feed report
Futures traders said the March 15 U.S. Department of Agriculture
cattle-on-feed report might weigh on summer month contract prices.
In the near term, the April contract was helped by better than expected
marketings during February.
But February placements into feedlots were up 16 percent over last
year, higher than the average analyst estimate of a six percent
increase.
The on-feed total was also considered high at 99 percent of last year,
compared to the average forecast of 97.5 percent.
Hog prices fall
Ample supply of hogs and weak pork prices pushed hog prices down again
last week.
Lower wholesale prices for hams, picnics and bellies led to a lower
pork cutout value in the U.S., said Manitoba Agriculture.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent
lean, live equivalent) declined throughout the week from $39.11 US per
cwt. on March 11 to $37.25 on March 14. On average, the week’s hog
price was about 5.5 percent below the previous week’s price.
The demand for pork could increase in April as retailers are expected
to feature more pork cuts, said Manitoba Agriculture.
