Pork has ups-and-downs
There was good demand for beef and pork at the retail level in the United States last week.
That led to better wholesale pork prices that pushed hog prices up to $32.75 per hundredweight (U.S.) in Iowa by midweek. That prompted increased marketing that drove the price back to $27.50 at Omaha, Nebraska on April 9.
Canadian hog prices followed.
Manitoba Agriculture said last week’s market strength may be short-lived. There are still ample supplies of pork. Average carcass weights have increased. American retailers are featuring beef for barbecuing resulting in lower retail beef prices than a year ago, but retail pork prices apparently have not declined from last year.
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This gives Americans little incentive to buy more pork and eat their way through the large pork stocks.
On the positive side, U.S. hog packers are still making good margins and are expected to pay enough to ensure their kill lines are kept busy, as long as profits can be sustained.
Some Manitoba producers claim there is now no benefit to shipping hogs south as local prices are as good or better than those from U.S. plants. Farrow to weanling operators might be interested in current U.S. weanling prices, which are similar to both 1996 and 1998 levels, said Manitoba Agriculture.
The next few months could be a turning point for weanling prices. In 1996, prices escalated in the summer and fall, while in 1998, prices plunged during the same period. This year is expected to be more moderate, with steady to lower prices this spring, a slight upward trend likely until late summer and lower prices again in the fall.
Beef trade active
Average fed cattle prices were up $1-$2 per hundredweight last week as processors kept busy. Canadian and American packers were active bidders. For the week, fed steers traded $1.56 per cwt. higher, and heifers were up by $2.16.
Prices April 8 in Alberta were steers $90-$92.75, flat rail $154.10. Heifers ranged from $90-$93.20.
Wholesale beef sales were less rosy. There was improved movement of middle cuts, but end meats continued to drag.
The Calgary wholesale price rose to $152-$160 on handyweights.
Canfax said the outlook is positive as feedlots are current in their marketing, and barbecue season is around the corner.
Feeder cattle prices were mostly steady. However quality grassers and feeders gained $1-$2 per cwt. last week thanks to the strong fed market.
Canfax said grass-fed cattle are in a world of their own, with no end in sight to the price strength. Feeder prices are expected to strengthen, as long as fed cattle stay strong.
In stock cow trade, bred cows and heifer quotes were mixed, depending on the types.
Some southern Alberta top quality cow-calf pairs sold at prices above $1,600.
Bred cows sold from $700-$1,400. Bred heifers were priced from $600-$1,075. Cow-calf pair sales were quoted from $700-$1,610.
The outlook is for steady prices.
