Hurricane affects hog prices
Manitoba Index 100 hog prices were estimated at $125 per 100 kilograms last week, down five percent from the previous week. At that level, prices are getting close to break even.
The Canadian market followed lower United States hog prices.
Barrow and gilt prices at terminal markets ended the week 50 cents to $1 (U.S.) lower than Sept. 10. Omaha and Sioux Falls each reported a practical top Sept. 17 of $32.50 per hundredweight.
Hurricane Floyd caused four hog slaughter plants in North Carolina and Virginia to close, reducing U.S. hog slaughter and forcing finished hogs to wait until this week to be marketed.
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The week’s movement of pork was good, but wholesale prices had to fall to encourage retailers to buy.
Average U.S. hog carcass weight last week was about 185.6 pounds or 2.5 lb. higher than the same time last year.
USDA’s swine inventory report, to be released Sept. 24, will show whether the breeding herd is continuing to contract.
Cattle supplies are large
Fed cattle prices were lower last week because packers had comfortable supplies in hand.
Average prices were $1-$1.50 per cwt. lower but there were several instances where heavier cattle received significantly lower bids. Some of these were passed or moved south, said Canfax.
Sellers struggled with these lower bids and consequently passed some cattle. Heavyweight cattle, especially steers, continued to be ample in supply and were difficult to sell at times.
Volumes sold topped 20,000 head, up 17 percent from last week, which meant packers had more than they needed.
On Sept. 16, steer prices were $85.85-$89.25 per cwt., flat rail $145-$146.95 and heifers $87.80-$89.50, flat rail $145-$146.65.
In the wholesale beef market, some cut-out prices have weakened while ribs have strengthened. The Montreal price for last week was up $1 to $153 per cwt. with steady expectations for this week. The Calgary market was expected to be steady to $1 lower in a range of $146-$160 for handyweights. Heavier carcasses would see discounts of $5 to $11.
Canfax said with the pipeline full, little change in cattle prices can be expected. Big cattle continue to be the toughest to move and will remain that way into early October. U.S. packer interest is key, creating a floor for local prices. Tighter supplies are still a few weeks away yet.
Cows were $1-$2 per cwt. lower. There is a good supply throughout the Prairies.
Most D1-2 cows traded from $48-$53, with a few sales higher.
Feeder prices good
Feeder cattle sales held firm despite increased volumes. Many producers are taking advantage of high prices by selling lighter cattle, or earlier than they usually do just to be on the safe side, Canfax said.
Fleshier-type cattle saw more discounts than in previous weeks. However, it’s still a seller’s market with strong prices.
Canfax said producers should expect more stable calf prices. Quality cattle will still bring top-end prices, but some settling is expected.
In stock cow trade prices were steady: Bred cows were quoted from $600-$1,300. No bred heifers were reported sold. Cow-calf pairs traded from $900-$1,640.
