Hog price drop noted
Canadian hog prices have dropped $25-$30 per 100 kilograms in the past three weeks.
Kevin Grier, market analyst at the George Morris Centre in Guelph, Ont., said about $15 of the drop is attributable to lower hog prices in the United States. Another $5 of the drop can be chalked up to the strengthening loonie and $10 is due to widening spreads between the U.S. and Canada.
After dropping below $30 (U.S.) per hundredweight Sept. 4, American hog prices climbed back around $31 by Sept. 11.
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Packers were able to boost bids because of improved pork prices. However, an oversupply of hogs and strong competition from a large supply of beef will keep a cap on hog prices through fall and winter.
Beef prices bottom out
Meanwhile, Canfax thinks the worst might be over in the fed cattle market, but it will be some weeks before prices improve significantly.
The hangover from the late August slump affected the early part of last week, but prices rebounded a little.
Heavy animals over 1,350 pounds continued to see low bids. American buyers were active.
Prices Sept. 10 were steers $76.25-$80.15 per hundredweight and heifers $80-$81.65.
With cattle prices strengthening a little, Canfax said packers will try to boost wholesale beef prices, but it will be hard to do in the face of abundant cheap pork.
Canfax said the number on offer should fall off in the next few weeks judging by the number of cattle placed in feedlots in June. This should support prices, but the market will continue to be volatile, especially if the value of the Canadian dollar changes a lot.
Slaughter cow prices in Western Canada were barely steady last week.
Given that boneless beef sales remain weak, the outlook is for steady to weaker prices.
Feeder and yearling cattle prices were steady to slightly weaker. Canfax said 900 lb. steers were down $1.50 per cwt. on average, but many sales barns reported cattle from reputable ranches sold well.
More calf sales were reported at steady to firm prices.
Canfax said U.S. feeder cattle futures prices rose Sept. 11 and that should support cash prices. Volumes should continue to decrease on yearlings and increase on calves.
Bred cattle prices were steady on few quotes. Bred cows ranged from $500-$900. No bred heifer sales were reported. Cow-calf pairs sold from $950-$1,150 on few sales.
