Fed cattle prices drop
Fed cattle prices were another $1-$1.25 per hundredweight lower last
week.
Offerings were similar to the week before and fewer cattle were passed,
Canfax said.
The market was erratic at times, with packers bidding well under the
range of $90.50-$92 where the bulk of cattle sold.
Eastern Canadian buyers were active, but there was less trade with the
United States.
Some cattle are now sitting for two to three weeks after they are sold.
Read Also
Canada-U.S. trade relationship called complex
Trade issues existed long before U.S. president Donald Trump and his on-again, off-again tariffs came along, said panelists at a policy summit last month.
Alberta prices May 30 were steers $90-$91.75 per cwt., flat rail
$48.95-$50.75 and heifers $90-$92.25.
Beef surplus continues
Wholesale beef prices fell, Canfax said.
The Montreal steer price is down $3 per cwt. at $163-$164, while the
Calgary market is down $2, with handyweight steers at $150-$166. Few
heavy cattle are in the kill mix.
Business is considered adequate for this time of year, but there
continues to be plenty of product available.
Canadian markets were closely watching U.S. cash cattle trends,
especially after the futures market tumbled late in the week.
Few Canadian cattle traded for less than $90 last week, but
expectations of a weak U.S. market this week could make prices in the
$80s more common.
The fact that carcass weights have likely posted their annual low and
are expected to trend higher is also a negative weight on the market.
Feedlot losses
Feeder prices also fell last week, Canfax said.
Lower fed cattle prices and feedlot losses have strained the market.
Feeder steers were $2-$5 per cwt. lower while heifers were $3-$4 lower
on most classes.
The volume was 34,260 head, 11 percent larger than the previous week
and nine percent larger than the same week last year.
Grain fed D1, 2 cows were fairly steady, with tops still as high as
$68. However, cull cow types and leaner cows were under some pressure,
trading mostly at $52-$56.
Canfax expects the lower fed cash market will likely continue to
pressure feeder cattle, and a stronger Canadian dollar may discourage
U.S. buyers.
However, supplies are small this time of year and good quality cattle
will still fetch premiums.
Stock cow trade volumes continued tapering off. A few bred cows and
heifers traded from $850-$1,250, with some as low as $600.
Cow-calf pair volumes were large during the week, with most at
$1,000-$1,400, and a few sales as high as $1,600. Common and older cow
pairs traded as low as $800.
The lack of pasture and potential summer feed has forced the sale of
cow-calf pairs in some areas.
Prices have decreased over the past month to reflect the increased
supply.
Quality cow-calf pairs averaged a little less than $1,200, with more
common pairs selling as low as $800.
Some reports are that more common cow-calf pairs are being split after
sale and cows with enough flesh are sold as D1, 2 cows, Canfax said.
Weaker pork demand
Lean hog futures prices dropped again last week and U.S. cash hog
prices fell by $2 US per cwt. as the week progressed.
Manitoba Agriculture said reduced post-Memorial Day retailer demand led
to a lower pork cutout value.
Analysts have been concerned about the resistance of retailers to drop
the price of pork to encourage consumers to buy more.
Average retail pork prices in April were 1.3 percent above a year
earlier, while the pork cutout value fell by almost 30 percent and
average hog prices dropped by one third from the previous April.
Retail prices are likely to decline in May, but any price change at the
retail level is usually much less than at the wholesale or farm levels,
said Manitoba Agriculture.
Bacon and belly prices usually start to increase in the summer , which
normally gives hog prices a boost, but large belly stocks have
depressed the normal price surge. The Iowa-Minnesota daily direct hog
price (plant mean, 51-52 percent lean, live equivalent) fell from
$35.28 per cwt. on May 28 to $33.90 on May 30. Packers were expected to
be short of supply this week, requiring them to bid higher.
On average, the week’s hog price was down 10 percent from the week
before.
The U.S. Department of Agriculture’s monthly hog and pig report
released May 31 showed the April pig crop up by one percent from a year
ago, compared to analysts’ expectations of a 1.5 percent increase.
