Hog prices rise
Hog prices rose last week thanks to a reduced supply of pork in storage.
In Manitoba, the estimated average Index 100 hog price rose to $128 per 100 kilograms, up by two percent from the previous week. Slaughter in the province hit a record 62,443 as the new Maple Leaf plant handled close to 10,000 head, gearing up to its goal of 45,000 head a week.
The United States Department of Agriculture’s cold storage report for the end of August showed a large drop in pork belly stocks from the previous month. But Hurricane Floyd damage to hog production and delivery was not as bad as first thought.
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The average hog price in Iowa-Southern Minnesota (plant top, 51-52 percent lean, live equivalent) rose from $36.50 (U.S.) per hundredweight on Sept. 20 to $39.50 per cwt. on Sept. 24. USDA’s Hogs and Pigs report on Sept. 24 found four percent fewer hogs on U.S. farms than last year, eight percent fewer sows and four percent fewer market hogs.
The total and the market hogs numbers were in the range of market expectation, but the decrease in sow number was greater than anticipated. These numbers confirmed the outlook for average prices this fall of close to $30 (U.S.) per cwt. (live), which, although 36 percent above the disastrous prices in fall, 1998, would still be 34 percent below the 1997 level.
USDA’s forecast for 2000 is for hog prices to average in the mid $30s (U.S.) per cwt. (live).
Cattle too heavy
Fed cattle average prices were $2 lower last week. Heavyweight steers were discounted.
Canfax said packers entered the week with good inventory and added to it. Several loads moved to the U.S. In some cases sellers fought the lower prices and passed cattle.
Prices Sept. 23 were steers $81.25-$85.25 per hundredweight, flat $142.95 and heifers $82-$86.40, flat rail $143.
As is usually the story in September, cattle weights are climbing. However, each year it seems to get worse. Last week saw Canadian steer weights hit a record 827 pounds with Alberta at 833 lb.
Most packers report some slowdown in beef movement for October delivery. Wholesale beef prices in Montreal were steady at $153 per cwt., but will fall $2 this week.
In Calgary, handyweight steers are $146-$158, but heavyweight carcasses are discounted.
Canfax said producers must be diligent about getting rid of heavy cattle. Even moderately heavy cattle become elephants when left to sit two or more weeks after purchase.
Backed by good supply, packers will maintain pressure, Canfax said.
Cows were steady to 50 cents per cwt. lower on the weekly averages, but by week’s end, barns reported sales ranging $2-$4 higher. The late week strength was attributed to higher boneless beef prices, tighter supplies through the auction markets and lots of competition from those buying pregnant cows.
Feeder cow markets were also strong.
Feeder cattle prices were mostly steady, but weekly averages indicated $1 lower, probably because there were fewer cattle trading at the top.
Some auction barns reported yearling prices barely steady to lower, especially on fleshier animals.
Volumes were down by 18 percent compared to the previous week.
Prices compared to last year are still $15-$25 per cwt. higher. Canfax expects further price stabilization, especially in calves, as volumes climb.
The September market has probably already peaked, although ample supplies of cheap feed grain will keep prices from falling too far.
Bred cows and heifers were poorly quoted, but interest is growing. Bred cows ranged from $750-$1,300. Bred heifers were $800-$1,150. Cow-calf pairs were $1,000-$1,650.
