Fed prices up
Fed cattle strengthened significantly starting midweek, with average
prices ending $2.75 per hundredweight higher for steers and $2.25 per
cwt. for heifers.
Canfax said in some cases packers are picking up their cattle sooner
than the 10-14 days seen recently.
Alberta prices on Sept. 19 were steers $95.50-$98 per cwt., flat rail
$155.60-$159.70 and heifers $95.50-$98, flat rail $157.65.
Movement of beef products has been good.
Calgary wholesale beef is $4 per cwt. higher this week at $154 on
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handyweights and $148 on heavy cattle.
The eastern market is up $2 to $159.
Canfax said the strong gains of the last two weeks could cause the
market to take a breather before heading higher.
Marketable supplies should tighten further into October and the rest of
the fourth quarter.
The strong U.S. market will provide good support to the local market.
Canfax noted that market-weight fed steers were being bought last week
to go back on feed in the expectation of higher prices.
Feeder prices rise
Increased optimism among western feedlots due to higher fed markets
helped to raise feeder prices.
Steers climbed by 50 cents to $3 per cwt. with larger increases on
heavier calves and yearlings. Heifers were 50 cents to $1.25 higher.
Strong interest from American and eastern Canadian buyers continues to
be a factor in most sales.
Feeder volumes were 13 percent smaller than the previous week at 58,500
head and 10 percent smaller than the same week last year.
Slaughter cow prices were almost $2 higher, averaging slightly less
than $53.50 on D1, 2 cows.
Canfax expects prices to continue strong, given the competition between
western and outside buyers.
Also, poor harvest weather is creating more feed grade grain, perhaps
reducing producers’ feed costs.
The bred cow market has yet to begin. A few bred cows and heifers
traded at $750-$1,000. Cow-calf pair trade is winding down for the
fall. A few pairs sold at $1,050-$1,375.
The United States Department of Agriculture’s monthly Cattle on Feed
report said the number of cattle on feed Sept. 1 was 6.7 percent below
a year ago. In August 2002, fed cattle sales fell by 2.3 percent from a
year earlier. However, there was a 0.6 percent rise in feedlot
placements this August compared to last August.
This increase was due to more light animals going into feedlots as well
as more feeders heavier than 800 pounds.
The rise in placements of heavier animals this year could be due to the
increased cost of feed.
Hog prices increase
Hog prices continued to rise last week, despite another week with U.S.
hog slaughter exceeding two million head.
Reduced beef production appears to have encouraged the improved
retailer demand for pork.
Higher wholesale prices for hams, ribs, loins and bellies raised the
pork cutout value again, which led packers to increase prices paid for
hogs, Manitoba Agriculture said.
The Iowa-Minnesota daily direct hog price (plant mean, 51-52 percent,
lean carcass converted to live weight) rose from $29.64 US per cwt. on
Sept. 16 to $31.30 on Sept. 19.
On average, the week’s hog price was about eight percent above the
previous week’s price.
The recent breeding herd liquidation has prompted the USDA to lower its
U.S. pork production forecast for 2003 by 100 million lb. to 19.77
billion lb., bringing it closer to the projected 2002 level.
Higher beef prices projected for the rest of 2002 and 2003 will likely
strengthen pork and hog prices next year.
