Hog prices fall again
Hog slaughter in the United States was a record 2.17 million head last week, which might have helped reduce the expected backlog of hogs this week.
As predicted, the U.S. Thanksgiving holiday resulted in lower hog prices. Prices fell to $14-$16 (U.S.) per hundredweight live at mid-week, but rose to $18 per cwt. in some markets on Nov. 27, when hog marketings were lower.
Canadian prices dropped in response to falling American hog values.
Manitoba’s average Index 100 price (including premiums) of $63.59 per 100 kilograms on Nov. 25 was about 60 percent below prices of a year ago.
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American producers have resisted selling hogs at these rock-bottom prices, so hog marketings could jump back up this week and depress prices again. Renewed talk by some U.S. farmers about closing the border again is also a negative factor.
Manitoba Agriculture said prices should improve early in the new year.
“When hog prices do start to trend up, the rise is likely to be sharp. There is an opportunity now for hog feeders to profit from the current low weanling prices. Some producers in Manitoba with empty shelters are considering filling them to take advantage of the market situation,” the agriculture department’s livestock report said.
Cattle supply light
Fed cattle prices opened the week strong and a light offering kept packers bidding strong in the hunt for supply.
Weekly averages were $2 per cwt. higher on steers and $1 higher on limited heifer offerings. Canfax said volumes were considered light, but were up 10 percent from the previous week at more than 12,000 head.
Few cattle were shipped to the United States.
Prices Nov. 26 were steers $88.25-$92.25 per cwt., $154.60-$157.35 flat and heifers $87.75-$93.25, flat $157.35.
Higher cash cattle prices are
driving the beef wholesale market higher. The Calgary price was up $3 per cwt. for this week in a range of $150-$158 with limited trade to $172 on handyweight steers.
Ample supplies of lower-priced pork are the limiting factor to stronger beef sales.
Canfax said November will probably mark the high-price mark for the year. Feedlots are marketing cattle early, but numbers are still expected to be high in December and, combined with the holiday disruptions in kill schedules, prices will probably fall a little.
Slaughter cow prices were mostly steady on good volumes. Demand eased late in the week. Bred cow sales have picked up and packers are less pressed. Prices might weaken.
Feeder cattle prices were mostly steady. More sales rings reported special bred cow and heifer sales, keeping feeder volumes fairly high. Strong demand continues from feedlots for good quality yearlings and calves.
Canfax expects large numbers of bred cows and heifers in December, with calf and yearling numbers dropping off. Prices are expected to remain steady to strong.
Bred cows traded in a wide range of $400-$1,410 with good quality animals trading at $950-$1,350 and medium types at $750-$1,000.
Bred heifers were priced from $620-$1,400. Good quality heifers brought $900-$1,300 and medium types $700-$1,000. Cow-calf pairs ranged from $900-$1,100 on limited sales.
