Fed cattle rise
Fed cattle prices rose last week with averages up $2.50-$3.25 per hundredweight. Heifers showed the most strength.
The offering was predominantly calves, said Canfax, and a fair number of the yearlings headed to the U.S. market.
Stronger American prices meant a solid floor for western Canadian prices but the stronger Canadian dollar kept a lid on the increase.
Feeders in the United States are extremely current, meaning they are marketing cattle early.
Steer carcasses at the end of March were 18 pounds lighter than a year ago. Heifers were down 17 lb.
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Some U.S. cattle with a projected May marketing date are selling now, boding well for the summer when numbers traditionally climb.
In Canada, 22,000 head traded, up four percent from the week before, said Canfax.
Alberta prices April 10 were steers $108-$112 per cwt., flat rail $184.35-$186.25 and heifers $108.75-$111.25.
Canfax said the Good Friday holiday this week will mean less beef is produced. This should help support prices because movement is also starting to pick up a bit.
Prices could strengthen more, but the movement of the loonie will also have to be considered.
Wholesale beef prices are generally steady this week and higher prices are expected with the barbecue season approaching.
The Montreal market is steady at $185-$186 per cwt. while the Calgary market is steady to $3 higher in a range of $174-$179.
Feeder market stronger
Feeder prices generally were stronger.
Steers were $1-$1.50 higher while heifers sold mostly $1-$3 higher with some sales as much as $4.50 higher.
Light heifers saw the most strength, due likely to a combination of lighter volumes and sales of higher quality replacement types.
Volumes were smaller with a total of a little more than 26,000 head reported, down seven percent from the week before and 41 percent smaller than the same week last year.
Most slaughter cow sales reported fairly steady trade, but some sales were slightly higher. The average D1, 2 cow price was $58.50 per cwt., up 50 cents.
Canfax said feeder sales will likely remain strong as volumes lighten heading into the summer.
Feedlots are still looking to secure inventory to fill empty pens and will remain competitive bidders.
In stock cow trade, cow-calf pair volume is starting to pick up. Most pairs traded at $1,200-$1,500, but the range was $1,030-$1,650.
Bred stock trade seasonally tapered off. Trade on bred cattle was $900-$1,490, with most sales at $1,000-$1,300.
Cattle on feed
The number of cattle on feed in Alberta and Saskatchewan on April 1 was down 34 percent from last year at 723,993 head, a difference of 372,000 head, said Canfax.
Placements were down eight percent compared to March 2002 as producers aggressively sold market-ready cattle.
Feedlot managers are pulling cattle ahead to sell because it is profitable to do so and because live cattle futures show lower prices later this year, said Canfax.
Compared to March 2002, there has been a 30 percent decrease in the under 600 lb. class, a decrease of 22 percent in the 600-699 lb. range, a one percent increase in 700-799 lb. range and a six percent decrease in the 800 lb. and heavier class.
Fed cattle exports were up 28 percent from March 2002 and fed slaughter is up four percent from last year.
Hogs creep higher
U.S. cash prices for hogs held up well despite two days of sharply lower pork prices, said Manitoba Agriculture.
Lean hog futures prices were lower in all contract months with the April contract falling to meet cash prices.
Traders blamed the continued large supply of slaughter hogs for the lower prices. Sow slaughter during the last week of March was 12 percent higher than in 2002.
If sow herd liquidation is accelerating, prices will eventually improve.
Pork belly futures prices fell last week, giving retailers little incentive to store fresh product.
This could lead to a lack of available product by early June when summer demand is typically strong.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) started the week at $36.77 US per cwt. and rose to $37.34 midweek before falling back to $37.11 on April 10.
The week’s average hog price rose about one percent.
