Cattle prices up
The United States Department of Agriculture said May 21 that the number of cattle on feed stood at 103 percent of the same time last year, the same as in the April report.
However, traders were expected to be surprised by the number of cattle placed in feedlots during the month and the number of cattle marketed.
In the seven key states, traders expected placements to be down, but they were up six percent over last year.
Marketings were expected at 102 percent but were 104 percent, according to USDA.
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This heavy marketing, which reduced the number of market ready animals, bodes well for June prices.
But large placements in May could hurt prices in the fall when the animals are ready to go to market.
During the week, U.S. cash prices for fed cattle were steady to $1 (U.S.) higher to the $63-$65 per hundredweight level in the Midwest and $65 per cwt. in the high plains area.
Canadian fed steer prices were up $1.25 per cwt. from the previous week’s average and heifers were up 75 cents.
Canfax said prices May 20 were $87.25-$89.50 per cwt. for steers, $147.45-$148.80 for flat rail and $87 for heifers.
Packers continued to be busy with another week that saw more than 72,000 animals slaughtered. Steer weights edged down two pounds.
Wholesale beef prices on handyweight steers for this week are up $2-$3 in a range of $146-$155 per cwt.
“With producers selling calves as aggressively as they’ve been, fed cattle supplies into June should remain more manageable than we’ve seen in a while,” said Canfax.
Look for fed prices in the upper $80s for another week, but the market will ease back a bit once beef movement starts to slow. This usually happens after Father’s Day.
Slaughter cow prices gained another $1-$2 per cwt. thanks to the strong grinding market.
The stronger prices drew a few cows out of the woodwork but were still met with an active packer demand. Prices should gain a similar amount this week.
Feeder cattle prices were generally stronger.
Feedlots are anticipating the smaller feeder runs ahead.
Light cattle remain the strongest with prices $3-$5 per cwt. higher than last year.
“Tighter feeder supplies, good moisture conditions, strong fed cattle prices and low feed costs can only mean solid days ahead for feeder cattle prices,” said Canfax.
In limited stock cow trade, bred cows ranged from $600-$1,200, with the bulk at $850-$1,100. Bred heifers were $600-$1,050 while cow-calf pairs brought $700-$1,520 with the bulk at $1,100-$1,300.
Hog prices fall
Movement of pork through the system fell last week, as did wholesale pork prices, resulting in lower cash hog prices in the U.S.
Iowa-southern Minnesota hog prices (plant top, 51-52 percent lean, live equivalent) fell from $42.50 per cwt. (U.S.) on May 18 to $41.25 per cwt. on May 20.
Packers were expected to reduce hog slaughter to try to force pork prices back up, said Manitoba Agriculture’s weekly livestock report.
With ample supplies available, any reduction in slaughter levels could raise the average weight of market-ready hogs and add to an already-large pork supply.
American hog producers are being advised not to delay hog sales before the Memorial Day long weekend, because demand for pork usually drops off and hog prices could be as much as $4 per cwt. (U.S.) lower after the holiday.
Index 100 hog prices in Ontario and Quebec averaged above $146 per 100 kilograms last week.
Manitoba Index 100 hog prices were estimated at close to $137 per ckg, but prices could decline this week in response to the weaker U.S. market, Manitoba Agriculture said.
May will be the first month of positive average net returns per hog sold by Manitoba farrow-finish operations since hog prices fell in September 1998.
