CJD news bad for beef
The fed cattle market opened low and stayed there last week, ending
with more bad news when it was reported that a British citizen living
in Florida has developed Creutzfeldt-Jakob disease.
There is little chance the disease was picked up eating American beef,
but the futures markets punished fed cattle prices anyway.
On the cash market, weekly averages for steers and heifers were
$1.50-$2 per hundredweight lower than the week before.
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Volumes soared to 29,000 head, up 21 percent from the week before, said
Canfax.
American buyer interest was strong early in the week with large numbers
moving south at prices of $105-$106 US on a carcass basis.
Canadian packer demand also rose, but with the large volumes they were
not forced to bid up prices.
Alberta prices April 11 were steers $94-$98.15 Cdn per cwt., flat rail
$159.65-$161.95 and heifers $95-$98.15.
Wholesale beef movement remains slow, as retailers take a wait and see
attitude.
Summer-like weather in Eastern Canada should help increase interest in
cuts for barbecues.
The long-term impact of the CJD scare on the American market was
unclear.
Wholesale beef in Montreal is down by $4-$5 at $174-$175 per cwt.
The Calgary market fell $5-$6 with handyweight steers at $162-$176 per
cwt. and the heavies at $160-$162.
Canfax said better beef movement is needed to return stability to the
market, but the market will probably remain nervous for some time.
Feeders steadier at week’s end
Feeder prices fell last week, but some sales reported more stable
prices toward the end of the week, Canfax said.
Feeder steer average prices were $2.75-$5.75 lower, while heifers
traded $1.75-$4 lower.
Strong grass cattle sales were reported in parts of Alberta,
particularly in areas that recently received snow.
Replacement heifers were also trading higher by the end of the week.
Volumes were 27 percent smaller than the previous week and 32 percent
larger than the same week last year. There were some travel problems
early in the week due to snow.
Slaughter cows were $1.75 lower partly due to the lower fed cattle
market.
Canfax said grass type calves and replacement heifers will likely
remain strong.
Heavier feeder cattle may see some pressure due to the lower feeder
futures.
Stock cow trade saw good volume.
In wetter areas, prices were strong.
Bred cows traded from $850-$1,500 with the bulk trading at
$1,100-$1,420.
Bred heifers sold from $950-$1,350, most at $1,100-$1,250.
Cow-calf pairs were as low as $1,000 but most traded from
$1,300-$1,600 with tops to $1,700.
Hog prices unsettled
The United States hog industry is still unclear about short-term market
direction, despite the partial lifting of the month-long Russian ban
on U.S. poultry products on April 15, said Manitoba Agriculture
U.S. poultry imports to Russia remained on indefinite hold only one day
after the ban was formally removed as Russian regulators cancelled
import permits, which will force Russian trading companies to apply
for new permits. How long the process will take or when Russian
companies will be allowed to import chicken again is unclear.
Ukraine announced it is not planning to follow Russia’s lead by
lifting its ban on U.S. poultry, so cheap chicken is still depressing
retail red meat demand.
Ironically, last year at this time, North American hog producers
enjoyed much higher prices than expected as a result of the
foot-and-mouth disease outbreak in Europe.
Once again, the actions of a European country are having a significant
short-term impact on the hog market, but this time it is negative, said
Manitoba Agriculture.
One positive development for the pork industry recently has been the
removal of the Japanese safeguard tariff on imported pork, which was
in place until March 31. With a return to lower tariffs, pork exports
will increase.
Some analysts are still optimistic about an improvement in American
domestic meat demand as the grilling season approaches.
Pork demand might pick up in response to supermarket promotions,
despite abundant meat supplies and relatively low prices for beef and
poultry.
U.S. pork cutout value rebounded when prices for the higher-value cuts,
loins, ribs and bellies increased.
As the week progressed, packers were willing to pay more for the
smaller supply of hogs marketed.
The Iowa-Minnesota Daily Direct hog price (plant mean, 51-52 percent
lean, live equivalent) rose from $29.86 US per cwt. on April 15 to
$32.18 on April 18.
On average, the week’s hog price was about 1.7 percent below the
previous week’s price.
