Western Producer Livestock Report

Fed cattle rally

Fed steer average prices last week were steady, while heifers were $1.85 per hundredweight lower due to fewer yearling types in the mix.

The week closed strong after a slow start, Canfax said.

Sellers held out for better prices than the low $70s offered early and by late April 20, bids had climbed to $75-$78 per cwt. Prices April 21 closed in the $77-$79.50 range.

The number of cattle offered for sale was not as large as it appeared. A fair number of cattle were directed toward the set-aside program. A little more than 24,000 head traded.

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Alberta prices April 21 for steers were $76.75-$79.50 per cwt., flat rail $130-$131.90 and heifers $77.25-$79.50, flat rail $130.

Producers should feel more confident about their ability to manage front-end inventory heading into the next few weeks, said Canfax.

This confidence should lead to more orderly marketing and better bargaining position. Prices should be able to test into the low $80s this week. However, Canfax recommended selling into rallies, warning they may not last long.

Feeder prices mixed

Volumes through Alberta auction markets were smaller with about 35,500 head trading, down two percent from the week before and 26 percent smaller than a year ago, said Canfax. Averages were mixed, with prices firming as the week progressed.

Steers 500-700 pounds were steady to 50 cents lower, while 700-900 lb. fell $1-$1.50. Steers 900 lb. and heavier traded steady to slightly weaker.

Heifers were under more pressure as 500-700 lb. fell $2.50-$4.25 and 700-900 lb. fell $2-$2.75. Heifers 900 lb. and heavier were steady to 75 cents lower.

D1, 2 cows trended lower, falling by $1 to $23 per cwt. on average. Butcher bulls also fell $1.

The volatility in the fed market will influence the feeder market through late spring into summer, Canfax said. D1, 2 cow prices are expected to weaken slightly more as the federally inspected cow kill will move from XL Foods’ Moose Jaw plant to Calgary again in May.

Stock bred cow prices in northern and central Alberta were steady at $300-$900. Bred heifers in northern Alberta brought $400-$825. Cow-calf pairs mostly sold at $700-$1,200 with tops up to $1,430.

Beef prices mixed

Canadian cutouts two weeks ago were mixed with the AAA averaging 40 cents lower and AA 45 cents higher than the previous week. Cutouts on AAA are about $2.45 lower than a year ago.

Product movement was considered good, reflecting the normal strong demand seen leading up to the May long weekend.

U.S. cutouts were $3 US higher on excellent movement, putting Choice at $158 and Select at $142. Calgary wholesale prices for delivery this week are $137-$139 Cdn, $2-$4 lower.

The U.S. Department of Agriculture released its monthly cattle on feed report on April 22, which showed April 1 feedlot supplies up one percent over the year before at 10.87 million head. Analysts on average had expected a two percent increase.

March marketings were steady at 1.973 million head, surprising analysts who had expected a 3.5 percent drop.

March placements were down three percent to 1.76 million head. Analysts expected only a slight decrease.

Hog prices rise

Supplies of market-ready hogs were somewhat tight supporting hog prices last week, despite weak pork prices and negative pork plant margins, dealers told Reuters News Service.

The average Iowa-Minnesota daily direct hog price (51-52 percent lean carcass converted to live weight) increased from $53.64 US per cwt. on April 18 to $54.30 midweek then fell to $54.18 on April 21. The wholesale cut-out price was similar to the previous week at $67.81 per cwt.

Pork production trimmed

The big American packing company Swift & Co. planned to cut pork production this week, citing high hog prices and poor operating margins.

For the week ending April 16, Manitoba five kilogram pigs received top bids of $76.68 Cdn per pig while contract tops were $46.47. Spot prices for 23 kg pigs were to a high of $108.94 and top contracts were $83.73 per pig, said Manitoba Agriculture.

The U.S. national direct delivered price for five kg pigs (converted to Canadian dollars) was $39.02-$68.02 per pig and 23 kg pigs were $87.19-$105.13. Prices of U.S. iso-weans and feeder pigs are declining due to seasonal trends, said Manitoba Agriculture. Heavy pig prices should fall less than lighter pigs as producers aim to finish hogs in August or before fall.