Hog prices fall back
Hog prices fell last week in step with a weaker market in the United States.
U.S. hog prices declined from $30.50 (U.S.) per hundredweight early in the week to $26.50 Jan. 29 as packers responded to lower wholesale pork prices.
Lean hog futures prices rose early in the week but fell at the close. U.S. retailers are expected to buy more pork at the lower prices, which will help reduce pork stocks and might encourage packers to increase bids for hogs this week, said Manitoba Agriculture.
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Hog carcass weights appear to be stabilizing and there were more sows killed in U.S. plants in December than expected.
But there is still concern that weekly hog slaughter below expectations could mean U.S. producers are retaining gilts for breeding or that hog marketings are backing up and hogs will eventually be marketed at heavier weights.
Manitoba Index 100 hog prices (including premiums) declined from $115 per 100 kilograms early in the week to $109.72 on Jan 28.
Steer, heifer prices ease
Fed steer and heifer average prices eased back under $90 per cwt. last week as packers had adequate inventory.
Prices Jan. 28 were steers $87.80-$89.55 per cwt., flat rail $148.20-$152 and heifers $86.80-$89.70.
Larger U.S. kills have put plenty of beef into the system. Recent higher wholesale prices showed up at the retail counter and slowed beef sales. U.S. boxed beef prices are now dropping to spur demand.
Canfax said that with ample U.S. beef supplies in the chain, negative packer margins and plenty of available pork supplies, the cattle market will remain under pressure.
Canadian feedlots have an excellent level of currentness and this should help prices from drifting much lower.
The cow trade was mostly steady last week. Packer demand was strong. Most D1, 2 cows traded at $50-$55 with sales to $58.75.
Feeder cattle prices were strong last week.
The 400-500 lb. and 500-600 lb. steers were up by $3-$4 per cwt. on average. Heavier weights saw steady prices.
Canfax expects prices to be mostly steady, but further declines in fed cattle could put pressure on the feeder market.
Bred cow and heifer prices were mostly steady on limited volume. Bred cow prices ranged from $500-$1,250 with bred heifers ranging from $600-$1,100. There was light trade in cow-calf pairs, with prices ranging from $700-$1,000. Outlook: steady.
