U.S. has extra beef
The United States Department of Agriculture cattle-on-feed report issued last week contained some surprises when more head than expected went into feedlots.
As of April 1, 10.3 million were on feed compared to 10.1 million for the same time last year. This is a three percent increase and many of these are lighter-weight cattle.
On the western Canadian side, feeder cattle prices were mostly steady but many buyers reported fewer top quality types in many weight ranges and categories.
In Western Canada, the fed cattle market has been sloppy with larger offerings than usual. Weekly averages were down $3 and $4 respectively on steers and heifers. The market opened the week about $2 lower and finally dropped to the $86-$88 range on bulk trade, according to Canfax reports. Packers also reported a number of cattle that were not ready for slaughter, so smaller numbers made the AAA grade. A number were also passed by bidders.
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Large numbers of heifers continue to appear in the slaughter mix. So far this year, 323,101 were killed compared to 282,800 in 1998.
The George Morris Centre has compiled the first set of boxed beef cutout values for Canada. The value in any region of Canada is the Calgary price plus transport cost. Cutout is an estimate of the value of the beef carcass at the wholesale level.
As of April 2, both American and Canadian boxed beef values have been steady to slightly lower over annual levels. The four-week average for AA heavy was $1.60 per lb., AA light was $1.63, AAA heavy was $1.59 and AAA light was $1.63.
Pig numbers still a drag
On the hog side, prices are improving slightly but some analysts predict that a backlog of finished hogs and huge pork supplies in the U.S. may not allow hog cash prices to reach the spring future prices of $41.52 for April and $53.60 for June.
Last week, index 100 hogs in Toronto averaged $48.55, Alberta was $47.64 and Saskatchewan was $48.80.
