Hog prices rise here
Canadian hog prices rose last week, unlike the situation in the United States.
American retailers had enough pork supplies on hand for the July 4 holiday so retail demand slumped.
Lower wholesale pork prices and a reduced need for hogs caused packers to bid lower. Iowa-southern Minnesota hog prices (at plant, 51-52 percent lean, live equivalent) decreased to a range of $42-$55 (U.S.) per hundredweight on June 30 with a mean of $51, a drop of $2.97 from the week before.
Manitoba Agriculture said packers appear to be hoping that hog operations will be backed-up over the holiday, but it is more likely that hog marketings will remain relatively tight.
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Pork production in the U.S. during the summer is expected to be two to three percent lower than last year, which together with stronger demand for pork, could result in hog prices in the high $40s to low $50s per cwt. during the third quarter of 2000.
Prices could decline seasonally to the mid $40s per cwt. in the fourth quarter.
Cattle prices slip
Fed cattle prices were 75 cents to $1 per hundredweight lower last week.
Canfax said packer interest was mediocre at best, even from American and Eastern Canada interests, which resulted in the lower bids.
Prices June 29 were steers $88.05-$92.75 per cwt., flat rail $149.65-$152 and heifers $89.25-$91.50, flat rail $151.
Because of the Canada Day holiday, slaughter slipped below 70,000 head last week and that should help reduce the beef supply in the pipeline.
The outlook for July is for cash cattle prices to ease lower.
Large supplies of American fed cattle will likely continue to pressure U.S. prices, making it likely prices will be lower here too.
Basis levels could tighten later in the summer, but when local cattle supplies are adequate, any narrowing of basis is difficult to assume.
Slaughter cow prices were strong early in the week topping $70 per cwt., but fell to $65 later.
By late week, most D1, 2 cows traded from $58-$64. In the end, weekly averages were mostly steady. The outlook for this week is for prices to struggle to hang steady.
The feeder market remains strong.
Canfax said one sale recently saw Montana cattle contracted for the middle to end of October weighing 500-620 pounds.
Steers and heifers were sold at $95-$100.50 (U.S.) per cwt. In Canadian funds, that’s $150-$156 using $7 for freight.
Some local cow-calf producers appear interested in fall contracts, with others deciding to wait and see what the market offers later in the year.
Some recent quotes had 500 lb. and heavier steers at $150 per cwt. and over 800 lb. steers at $130.
Canfax said quality and volume continue to be the biggest factors in the marketplace. Buyers just can’t find enough good cattle. Yearlings are especially hard to come by.
Volumes on offer will continue to drop as producers begin to get into summer work.
In stock cow trade, bred cows and heifers were not well quoted. Bred cows ranged from $850-$1,250, with bred heifers from $775-$1,100
Cow-calf pairs sales ranged from $1,000-$1,700.
