Cattle prices rise
Fed cattle prices gained strength last week with steers averaging $1.50
per hundredweight higher and heifers up $1.25 per cwt., according to
Canfax.
U.S. cattle traded mostly $2 per cwt. higher the previous week, which
helped support the Canadian cash market at the start of last week.
Cattle started the week stronger and then traded mostly steady
throughout the week.
Fed cattle volume was five percent smaller than the previous week at
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13,200 head. Feb. 7 trade saw steers at $104.75-$107.60, flat rail
$179.15-$179.90 and heifers $105-$107.50, flat rail $177.30-$179.40.
Wholesale beef trade was steady last week. February is typically a
slower time for beef movement. This February has been fairly normal so
far, but it seems slower because last year had unusually good movement
at this time.
Calgary wholesale prices for the week beginning Feb. 11 on heavy
carcasses were up $2-$4 at $170-$173 while handyweights were up $3-$4
at $174-$185.
The eastern market is also up for next week with prices at $178-$179,
up $1-$5. Credit values remained steady with last week at $99-$100,
according to a Canfax report.
Fed cattle expectations for this week are for similar to slightly
stronger prices. Over the past few weeks the basis has widened and this
might start to increase price support through improved outside interest.
Feeder trade was stronger on most classes of cattle last week. Steers
saw prices increase mostly 50 cents-$2 with an exception in the 500-600
pound class, which increased almost $4.
Slaughter cow prices increased $3. Volumes on slaughter cows seem to be
smaller this week at some auction markets.
Canfax said basis levels continue to be wider than normal on all
classes of feeder cattle. This will continue to support an export
market with the U.S. prices still setting the floor in Canada. Stock
cows traded fairly steady with prices ranging from $750-$1,460 and the
bulk of the trade ranging from $1,200-$1,350. Bred heifers traded in
the same range, $750-$1,460 with most of the sales still around
$1,150-$1,350. Few cow-calf pairs are trading, but a few did trade last
week from $975-$1,430.
Hog prices fall
The lower U.S. pork cut-out value last week and increased hog
marketings resulted in lower packer bids for hogs as the week
progressed. The Iowa-Minnesota daily direct hog price started at $43.25
US per cwt. but fell to $41.26 per cwt. by the end of the week. On
average, the hog price was about two to three percent below the
previous week.
Predictions for hog prices and estimated costs of production in 2002
point to a third consecutive year of good profits for Manitoba hog
producers.
