Fewer for sale, prices up
Fed cattle prices rose, with steers up $2.75 per hundredweight and heifers up $2, said Canfax.
Fed supplies were tight, the total volume a little less than 14,500 head, 12.5 percent smaller than the week before.
Most cattle went to western packers but some went south.
More calves were in the mix, affecting carcass weights. Steer carcass weights averaged 809 pounds, down from 820 lb. the week before and 26 lb. lighter than the same week last year.
Alberta prices March 20 were steers $107.50-$112.50 per cwt., flat rail $182-$183.45 and heifers $107-$110.15, flat rail $182-$182.10.
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The U.S. market strengthened by $1 US per cwt. last week as traders focused more on the tight supply fundamentals than the impact of war and a slow economy on meat consumption. That, plus the tight local fed supplies and lighter carcass weights, should keep Canadian prices steady this week, Canfax said.
Beef sales have been steady, however movement is typically slower this time of year. Some packers are working fewer shifts to help manage tighter fed supplies.
Moisture in some areas has led to cattle with increased mud tag, slowing down the slaughter line speed, Canfax said.
Alberta wholesale beef prices this week are steady to $1 lower at $173-$175 Cdn per cwt.
The eastern market is also steady to $1 lower at $185-$187.
Feeder prices rise
Most feeder markets saw active bidding and smaller volumes, resulting in stronger prices on almost all classes.
Lightweight calves saw the most strength. As the snow melts and dugouts start to fill, buyers are eager to acquire grass cattle, said Canfax.
All weights of steers were stronger, mostly $1-$2 cwt. higher.
Heifers were also stronger on all classes with the exception of those heavier than 900 lb.
Total volume for the week at 29,500 head was 28 percent smaller than the week before and 25 percent smaller than last year.
Slaughter cows were steady. The overall average on D1, 2 cows was 30 cents per cwt. higher at $59.74.
With fewer feeders expected through the spring, prices should be steady. Lightweight calf prices might strengthen if more moisture arrives, said Canfax.
In stock trade, bred cow prices were higher at $900-$1,540, with most at $1,000-$1,400.
Bred heifers rose to $900-$1,530 with most at $1,050- $1,400.
More cow-calf pairs are showing up as the calving season goes on. Pairs traded at $1,150-$1,675, with most at $1,250-$1,450.
The U.S. Department of Agriculture said that as of March 1, the number of cattle on feed was down nine percent from last year, a little lower than the pre-report estimate.
The number placed in feedlots was down eight percent, significantly more than the pre-report estimate, which should help prices.
The number marketed during the month was down four percent, similar to the pre-report guess.
Hog prices improve
Packers raised hog prices by about $1 US per cwt. March 20 despite lower pork cutout values late in the week.
Hog supplies appear to be declining.
The week’s hog slaughter was down from the week before and could drop below the relatively high kill of a year ago, said Manitoba Agriculture.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) increased from $37.75 US per cwt. on March 17, to $38.52 on March 20.
First quarter 2003 hog slaughter in the U.S. is likely to exceed year-earlier levels by at least two percent, well above earlier projections based on the Dec. 1 pig inventory report.
It is unlikely that the U.S.’s extra slaughter hogs came from Canada, said Manitoba Agriculture.
The number of slaughter hogs imported from Canada is down from the first quarter 2002, while increased weanling imports prior to the Dec. 1 report already should have been accounted for in the pig inventory.
Canadian weanlings imported after Dec. 1 will not be ready for slaughter until the second quarter.
Barring revisions to the December inventory report, it is possible that most, if not all, of the additional first quarter hog slaughter can be attributed to a higher than normal number of sows and gilts being shipped to plants.
This week’s USDA hog report will be watched for possible revisions of the December report. It will also signal how much pork will be available in coming months and whether the amount of pork in storage is a burden on the market.
