Cattle prices average out
Fed cattle prices rose and then fell last week, resulting in mostly steady averages.
The volume on offer was up and calves made up most of the mix.
At times, packers appeared erratic in their bidding with strong and weak bids on the same cattle, said Canfax. There was some interest by American buyers.
Volumes offered are expected to increase through April, but price support is expected from the American fed market.
Beef demand is expected to improve after Easter and this should strengthen the American market, Canfax said. Its effect on Canadian prices will depend on basis.
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Wholesale beef prices slipped a little despite slowdowns at some plants, Canfax said.
Cool weather in the United States, relatively high prices already and the coming Easter holiday are all weighing on the market.
The Montreal price is down $1-$2 per hundredweight with steers at $193-$194.
Calgary’s steer market is steady to $2 lower at $189-$200 for handyweight animals and $185-$187 for heavy cattle.
Byproduct values are rising due to higher hide prices caused by the European foot-and-mouth slaughter reducing supplies.
Calves pressured
For the second week in a row calf prices were under more pressure than feeder cattle. This was likely due to fewer top quality cattle in the mix, Canfax said.
Prices were down $1-$2 per cwt. on average.
Top quality cattle attracted the most attention. Steers weighing 550 pounds sold at $160-$165.
Feeder cattle volumes increased 17 percent in Alberta.
Canfax said feedlots are expected to sell large numbers of finished cattle through April and the supply available to replace them is dropping. This should support feeder prices.
Lighter feeders that will reach finish weight after the summer market will attract more interest than summer-finishing cattle. Also, recent moisture in southern Alberta and Saskatchewan should improve cattle producers’ spirits.
Bred cattle prices were strong.
Bred cows sold at $875-$1,600 with most at $1,200-$1,500. Bred heifers sold at $900-$1,600 with most at $1,200-$1,400.
Cow-calf pairs sold at $1,025-$1,775, most from $1,200-$1,500.
Feeder cattle prices in Saskatchewan have climbed recently because of good demand for grasser cattle.
On average, prices in the first three months of 2001 were up almost $9 per cwt. over the first quarter of 2000.
Last year, Saskatchewan 600-700 lb. steers averaged $139.62, compared to $144.91 for the first three months in 2001.
Prices are expected to peak sometime during the second quarter, said Canfax.
Recent moisture in parts of southern Saskatchewan will help the grass situation, but coverage was spotty.
Hog prices dropped
Foot-and-mouth disease scares, slower pork demand and the U.S. Department of Agriculture hogs and pigs report dominated hog markets last week.
Packers lowered prices for most cuts to encourage retailer demand. They also lowered their bids for hogs.
Iowa-southern Minnesota average hog prices (at plant mean, 51-52 percent lean, live equivalent) decreased to $47.58 (US) per cwt. on March 30.
The week’s average hog price was 1.7 percent below last week’s level.
USDA’s March 1 quarterly hogs and pigs report was mostly neutral to nearby futures months, but possibly bullish to later months.
It showed the total number of hogs on U.S. farms was up by 1.7 percent from year-earlier levels. The breeding herd increased by 0.9 percent, while the number of market hogs on farms rose by 1.7 percent.
The quarterly report was more in keeping with analysts’ forecasts than the January and February monthly reports.
Those reports, new this year, had indicated that slaughter numbers would be higher in February and March. But the hogs didn’t appear. The numbers have now been revised.
The report also showed herds are not expanding quickly and that concerns about slaughter capacity in late fall and winter might be receding.
