Big jump in hog prices
Hog prices soared about six percent last week.
In the United States, cash prices reached the highest level in seven years, surpassing $60 US per hundredweight, said Manitoba Agriculture.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent, lean carcass converted to live weight) increased to $62.73 per cwt. on May 13 from $60.36 on May 10.
The pork carcass cut-out price was the highest since the series began in August 1998. Wholesale prices for all pork primal cuts, except hams, increased, raising the pork carcass cut-out value by $4.12 to $84.89 per cwt.
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The May lean hog futures prices reached a contract high, which was also a seven-year high for any contract. Pork bellies futures contracts traded at an all-time high for any contract month, at $123.35 per cwt, Manitoba Agriculture said.
Ron Plain of the University of Missouri said the market jump is demand driven, partly by exports but mostly by the domestic market.
He suggested that hog prices will move higher. The peak for live hog prices at terminal markets in 1997 was $62.75. The 1996 peak was $65.50. At this point, the odds appear good that cash prices will approach these levels soon.
Fed cattle cheaper
The fed cattle price average dropped in a volatile week.
Averages for the week on a weighted basis were $3-$4 Cdn per cwt. lower.
Volumes dropped 23 percent because producers were not interested in selling at lower prices. Calves made up the majority of the offering, but few sold. More often, heavier yearlings sold as producers attempted to avoid big weight discounts.
Initially packers bid cautiously due to the beef trim export problems but even when that issue was settled, prices did not rise. Part of the reason was the weaker U.S. market, down $3-$4 US.
Some packers extended their live inventory into June while others were seven to 10 days out.
Alberta prices May 13 were steers $80.25 per cwt., flat rail $132.90-$137 and heifers flat rail $138.
Canfax said supplies were more than adequate for current needs and packers would base their bidding on the news of the day. Some plants will be killing more young cattle because they can’t slaughter cows.
On average, Canadian cut-out values were about $1.50 per cwt. higher than the previous week.
The U.S. cutout was $1 US lower on Choice and $2 lower on Select.
Many feel that with retailers bought out past the Memorial Day weekend, prices have reached the spring high, said Canfax.
Wholesale prices in Canada are steady with the Montreal carcass price at $151-$153 and the Calgary market at $145-$150.
Fewer at auction
Alberta feeder auction market volumes were down 30 percent from the week before, with slightly more than 21,000 head trading, said Canfax.
Prices were steady to stronger with the exception of 300-500 lb. steers and heifers.
Steers and heifers between 300-400 lb. were down $5.25-$6, while 400-500 lb. were 25 cents-$2 lower. Steers 500-900 lb. and heavier traded $1-$1.50 stronger and heifers 500-900 lb. and heavier were $2-$3 higher.
D1, 2 cows fell $3.25. Cows will continue under pressure until there is a final rule regarding movement of live cattle across the border.
Canfax said the feeder market continued to be independent of other markets as optimism and speculation dictate the trends.
Prices are expected to remain steady and quality will be an issue because there is a wide range going through the ring. Volumes are expected to start their seasonal decline, which will also be price supportive.
Stock bred cows on light trade in northern and central Alberta were $375-$700 on medium quality and $700-$1,020 on good quality. Bred heifers in central Alberta were $500-$950, while in northern Alberta they were $375-$750.
Cow-calf pairs were $500-$1,300 depending on quality. Bulls were $12-$30, with most at $15-$25.
Sheep steady to stronger
Ontario Stockyard reported 1,641 sheep and lambs and 214 goats traded. Light lambs were up to $10 per cwt. higher.
The light offering of good heavy lambs traded stronger. Sheep and goats sold on a good demand at steady prices.
All prices in dollars per cwt:
New-crop lambs $126-$159, high to $168; 65-80 lb., $119-$159, high to $168; 80-95 lb., $88 -$129, high $173; over 95 lb. $70-$102, high to $131; heavier than 120 lb. $57-$95.
Feeder lambs, $120-$140.
Sheep, $45-$54 with some to $60. Plainer types, all weights, $30-$47. Rams, $4-$62.
