Cattle prices sluggish
Fed cattle prices held steady last week with most sales in a narrow range of $84 to $85 per hundredweight.
Canfax said some cattle were sold to the United States but the numbers going to Washington state appear to be down.
Alberta prices on May 28 were steers $83.35-$85.90 per cwt. and heifers $82.75-$85.65.
The packer-to-retail pipeline seems to have adequate inventory, Canfax said. Retailers are watching hog and pork supplies, knowing there is plenty of meat available.
Carcass weights are heavy. The Canadian slaughter rate is running at the same pace as last year, but domestic beef production is up five percent.
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Sluggish markets are expected to continue into June.
Cows traded mostly steady to slightly softer by weekend. Canfax said volumes appear to be increasing a little, as some drought area markets report weather-related sales. The outlook is steady to slightly lower.
The number of feeder cattle going to market increased about 25 percent as feed-short producers adjusted herds. Prices were mixed, but averages were generally steady across Alberta.
Quality appeared to heavily influence price. Canfax said if dry weather continues, expect increased feeder and cow sales and price fluctuations.
Most bred cow sales were $850- $950 on light volumes. There were a few quotes on bred heifer sales at $550-$800. Cow-calf pairs ranged from $625-$1,350.
Hog prices fall
Falling U.S. wholesale pork prices pushed hog prices down last week. The Omaha price hit $40 (U.S.) per cwt. May 27 and closed May 29 at $41, down $3 per cwt. from the week before.
Canadian prices fell $8-$10 per 100 kg through the week.
Manitoba Agriculture said packer break-even prices have fallen to the point that they might be forced to buy hogs at unprofitable prices to maintain kill levels.
The number of overweight hogs in the U.S. is falling and could drop more if predictions of hotter-than-normal weather in the U.S. hog belt come true.
Prices on the Prairies were also hurt by the dispute at the Fletcher’s plant at Red Deer, Alta. Manitoba Agriculture estimates the plant is slaughtering only about 1,000 hogs a day, down from 6,000 before the strike. About 2,500 surplus hogs a day are going to the United States, while about 2,000 head might be showing up in Manitoba plants in addition to the 2,000 head coming from Alberta before the strike.
In Ontario, Maple Leaf Meats will increase hog slaughter at its Burlington plant to 65,000 head per week.
To attract sufficient hogs, the company is offering up-front bonuses of $50-$165 a hog to producers who sign delivery contracts of one to three years respectively. Producers in the company’s Signature Pork program can also take advantage of the offer. In addition, the program will now pay full transportation costs from terminal to plant.
