Packers buy more cattle
Fed cattle prices closed $2.50 per hundredweight higher on average compared to the previous week.
Price strength came from strong packer demand in the United States and Canada, which coaxed more cattle to market, said Canfax.
By the week’s close, most cattle were trading at more than $100 per cwt. live.
Prices April 13 were steers $98.50-$101.95 per cwt., flat rail $171.20 and heifers $99-$99.25.
To maintain the cattle price, wholesale beef prices will have to rise. However, Calgary wholesale beef prices this week are steady to $2 per hundredweight lower in a range of $163-$174, top $177. The Montreal steer price is steady at $167.
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Spring beef demand typically reaches its peak in May so packers may want to increase kills if they get their selling price higher, Canfax said. This should maintain the aggressive demand for cattle.
Cattle that will grade AAA continue to fetch the strongest prices.
The cow market followed the fed market with prices steady to $2 stronger by week’s end.
D1, 2 cows ranged from $54-$68.25 (most were from $58-$66) and prices should remain strong as long as the fed market stays up.
Feeder cattle prices were also steady to higher, said Canfax.
Numbers are drying up, especially on the grass type cattle.
The welcome recent snows will probably hold some cattle back from market this week.
Sales of good quality heifers over 800 pounds topped $1.20 per lb.
The record high fed cattle prices could lend further strength to the heavier weight feeders. This should keep sales steady to higher.
In stock cow trade, bred cows ranged from $750-$1,500. Bred heifers were from $700-$1,250 on a light test. Cow-calf pairs were quoted from $800-$1,600. The outlook is steady.
Hog prices rising
Strong pork demand, lower hog slaughter numbers, disease concerns overseas, export possibilities and seasonal price trends came together to set a fire under cash and futures prices.
Hog futures price contracts for April, June and July all reached new contract highs Monday and continued rising through Thursday, with some volatility due to profit taking.
Increased cash prices pushed the futures markets, particularly the April contract.
Iowa-southern Minnesota hog prices (at plant 51-52 percent lean, live equivalent) on April 14 ranged from $41.25-$57.50 (U.S.) per hundredweight with a mean of $51.17.
Strong retail demand was responsible for a $1.89 increase in the pork cutout price. Tight hog supplies are keeping packers chasing hogs.
The estimated daily slaughter is running about four to five percent lower than this time last year.
Average Manitoba Index 100 hog prices (including premiums) also increased to an estimated average price of $186 per 100 kilograms for the week, up $13 from the previous week.
