Supplies hurt meat prices
Average fed cattle prices fell $2.50-$3 per hundredweight last week but remained above $90.
However, by March 19 prices for steers were $88-$91 per cwt. flat rail $150.30-$152 and heifers $87.25-$90.25, flat rail $151.30.
Canfax said bids were few late in the week as packers waited to see which way things would shake out. There are ample supplies of beef in the system.
Some packers have reduced kills partly due to the negative margins and poor movement.
The Calgary handyweight steer market is down $2 to $3 per cwt. in a range of $151-$160 with a few sales higher.
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The comparatively strong market here in recent weeks is weakening and it appears the Canada-U.S. basis level will widen to a more normal rate in the second quarter.
Canfax said outlook this week is for another $1 per cwt. dip in fed cattle prices.
Cows traded mostly steady last week. Packers appear comfortable with inventory.
Average prices are $3 per cwt. higher than this time last year. Expect steady prices this week.
Average feeder cattle prices were steady but began to slip by the end of the week on heavier cattle, said Canfax. Grass cattle, however, still sold strong.
For example, 500 lb. steers averaged $127 per cwt. last week, down $2 from the previous week but many good quality, reputation cattle saw prices of $138-$140.
Volumes were large. With the pressure on fed cattle prices expected to continue, feeders especially fleshy types, could also be under pressure.
The United States Department of Agriculture cattle-on-feed report showed placements during February were 20 percent larger than last year. Grass cattle are expected to remain strong into grass season, said Canfax.
In stock cow trade, bred cows were quoted from $700-$1,150. Bred heifers were $650-$1,100. Cow-calf pair sales were $750-$1,300.
U.S. hog report crucial
Midwestern U.S. hog prices dipped midweek but recovered to $26 (U.S.) per cwt. by weekend.
Pork meat sales have been relatively slow and large stocks weigh heavily on prices.
Manitoba Agriculture said today’s hog prices are well below the $37/cwt. producers were getting a year ago.
Prices still are expected to reach profitable levels, but the market has to consume significantly more pork in the short term to encourage packers to pay cash prices for hogs in the mid $30/cwt. range.
Analysts expect USDA’s latest hogs and pigs report, to be released Friday, will show whether U.S. hog producers have reduced hog production as much as intended.
The estimate of hogs in the heaviest weight category will give an indication of the number to be marketed in the next two months. Manitoba Index 100 hog prices were estimated in the $99-$100 per hundred kilogram range this week, down by $2-$3/ckg from last week.
