Beef prices get boost
A strong feeder and fed cattle market buoyed by sinking grain prices is the market to watch.
This spring marks the end of the third trading period for the restricted feeder cattle program. The program enjoyed its greatest success so far when a record 175,000 head from six American states moved into Canada. The program runs from Oct. 1 to March 31. Eligible American states include Montana, Washington, Idaho, North Dakota, Hawaii and Alaska.
Sixty-seven percent of the cattle were imported from Montana into Alberta feedlots. The next import period starts Oct. 1.
Read Also
USDA’s August corn yield estimates are bearish
The yield estimates for wheat and soybeans were neutral to bullish, but these were largely a sideshow when compared with corn.
North-south trade trends remain strong in other areas.
Northwestern American packer bids on fed cattle this past week kept prices healthy. Alberta packers seem to be trying to keep a lid on cattle costs so their plants are running below capacity at about 75 to 80 percent. However, this is a three percent higher kill than the year previous.
Live Alberta steers were $95-$99.85 while Ontario bids ranged from $101 to $114. Steers and heifers grading AAA drew premiums in this lively market.
Heading into spring, feeders continue to trade steady as calf supplies tighten before summer. Grass cattle are hard to find.
However, uncertain weather conditions are already forcing cow-calf producers in dried out regions like eastern Alberta to make some tough decisions. With next to no spring runoff, pastures are parched and dugouts may not fill unless heavy rains come this spring.
Producers are expected to start moving lighter weight cattle early to alleviate grazing and water shortage pressure.
The cow trade feeding the lean meat market is also performing well.
Top end D1 cows fetched good prices in Western Canada, trading between $57-$64 per hundredweight. with some quotes reaching $71.
Bred cows and bred heifers of mixed quality are showing up with prices ranging from $750-$1,500 for cows and $850-$1,550 for heifers. Cow-calf pairs range from $875-$1,550.
Fewer hogs, more money
Hog prices are stronger than last year at this time but remain far below the magic of 1997 when market hogs were worth more than $200 per hundred kilograms.
For the week ending April 7, the Saskatchewan pool price was $161.60. Sales are down nearly 18 percent compared to last year but the money is better by nearly $50 per ckg.
Manitoba closed the week at $173 per ckg.
Ontario was paying $179.61 per ckg. and marketings were down two percent compared to the year previous.
The American hog market is fully active with 1.8 million head slaughtered last week. This is down 1.7 percent for the same time last year. However, excitement has returned to the United States slaughter market where prices are up 45 percent over last year partly due to strong restaurant demand for bacon.
U.S. cash slaughter hog prices were from 50 cents to $2.50 per cwt. higher at the end of this week than seven days earlier. Prices are expected to hold until May.
Top prices in U.S. dollars for select markets April 7 were: Peoria $45.50, Sioux City $46, Sioux Falls $47.50, Iowa in country $49.50, Iowa at plants $51 and interior Missouri $45.
