Fed cattle prices fall
Price averages fell by $1.25 per hundredweight on steers and 25 cents
on heifers last week.
The highs occurred mid-week and prices eased off by the close.
More than 31,000 head sold, up 19 percent.
Weights appear to have bottomed for the year and are starting to slowly
increase, said Canfax.
American buying interest continued with cattle moving to a few states
and there were sales into Ontario.
Alberta prices May 16 were steers $95.50-$97.50 per cwt., flat rail
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$157.40-$159.80 and heifers $95-$97.50, flat rail $160.
A flat cash market has also resulted in flat wholesale beef prices.
The holiday shortened week will reduce the slaughter number. Canfax
said reduced supply sometimes means product moves better.
The Montreal price is steady to $1 per cwt. higher, while the Calgary
market is mostly steady with some increase on AAA product. Handyweight
steers are $157-$170 with heavy animals at $155.
Cattle supplies appear ample for now, so packers will likely not have
to bid far from the mid $90s to get what they want, Canfax said.
U.S. Department of Agriculture reported cattle marketings in April were
up 11 percent over a year ago. That exceeded trade estimates, which
averaged 9.8 percent.
April placements were 93 percent of a year ago.
The weight breakdown of cattle placed onto feedlots and supply of
cattle available for market in the coming months points to surplus
supplies and likely pressure in cash markets. Carcasses are still at
record high weights, producing enough beef to supply all markets even
if packers cut back on the rate of slaughter, analysts said.
Feeders steady
Feeder sales were steady to $3 per cwt. lower.
Lighter steers were under the most pressure with 400-700 lb. steers
down $2-$3. All classes of heavier steers were steady.
Heifers were also pressured, with all weights $1-$3 lower. Fleshier
types were discounted harder at some markets.
Almost 35,000 head sold through Alberta markets, up nine percent over
the week before and 43 percent larger than the same week last year.
Slaughter cows were mostly steady with the average 50 cents per cwt.
higher. Due to poor calving conditions, more cows than normal seem to
be selling this season.
Canfax noted U.S. feeder cattle prices have gained $3-$5 US recently.
If the U.S. continues strong, feeder exports may start to increase.
In stock cow trade, larger volumes of cow-calf pairs were sold at
$1,000-$1,800, with most of the trade at $1,200-$1,600.
Bred cows sold at $1,000-$1,350 with some as low as $850. Bred heifers
were $940-$1,500 with the bulk at $1,100-$1,350.
Hog prices rise
Declining U.S. hog slaughter and retailers stocking up for the Memorial
Day weekend led to higher wholesale prices for pork loins and butts.
But higher pork values did little to improve packer profits, as they
had to increase hog prices to get supplies during the busy seeding
season.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent
lean, live equivalent) rose from $35.53 per cwt. on May 13 to $39.20 on
May 16.
On average, the week’s hog price was about 10 percent above the
previous week.
