Flu worry hits hog price
Chicago hog futures dropped the three cent limit on April 27 on fears that global pork trade will be curtailed as a result of swine flu concerns.
Other commodities and stock markets also fell on flu worries.
Over the weekend Russia, China and other countries imposed import limitations on pork from Mexico and the United States where the new strain of flu has spread.
The World Health Organization on April 27 said pork cannot carry the flu virus. The world animal health body OIE said the disease should not be called swine flu because it also contains avian and human influenza components and no pig has been reported diseased so far.
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Fed averages drop
Fed steers averaged $99.71 per hundredweight, down 44 cents, and heifers averaged $98.62, down 93 cents, said Canfax.
Packers appear to be preparing for grilling season, but likely aren’t willing to build up inventory in these recessionary times, Canfax said.
It is not yet clear if budget-conscious shoppers will buy as much beef for grilling this year as they did last year.
The cash-to-futures basis widened to $7.76 under compared to $6.96 under the week before.
Alberta steer slaughter volume for the week ending April 18 rose 19 percent from last year to 22,893 head and heifer slaughter was up five percent to 15,832.
Canfax said prices this week should be steady to lower.
Feedlots have managed inventories well and marketed aggressively. But with more fed cattle expected to hit the market and reduced slaughter capacity because of the temporary closure of XL Beef in Moose Jaw, there could be pressure on fed prices.
D1, 2 slaughter cows averaged $55.50 per cwt., down 50 cents. Butcher bulls averaged $65.98, down 88 cents.
The temporary shut down of XL Beef in Moose Jaw will likely lower slaughter cow prices initially, but after the initial shock, prices should continue mostly steady, Canfax said.
Wholesale beef steady
U.S. Choice cutouts rose $5.52 to $153.42 US and Select climbed $5.49 to $151.07. The Choice-Select spread is unusually tight.
The Calgary wholesale market delivery this week was steady at $179 Cdn. Montreal was steady at $187, Canfax said.
Improved retail demand, good sales features and interest in middle cuts is expected to continue, resulting in stronger retail beef margins.
Byproduct values were $60-$95.
Feeder prices climb
Feeder markets saw the steer average rise $1.43 per cwt. and heifers climb $1.22.
Demand for 300-500 pound steers was strong with prices up $1.35-$1.76 and 500-700 lb. rose 38-50 cents.
Grass type 700-800 lb. steers rose $1.06 while those heavier than 800 lb. rose $2.33-$2.61.
Tight numbers and reduced quality saw 300-400 lb. heifers slide 53 cents. Heavier heifers were $1.38-$1.65 higher.
The volume sold rose 35 percent to 43,852 head.
Feeder exports to the U.S. two weeks ago totalled 13,987 head, up 31 percent from the previous week but two percent lower than last year.
Canfax said strong fourth quarter live futures and lower feed costs are lending support to prices of heavier feeders.
American buyers are becoming more familiar with the country-of-origin rule and export demand should improve, Canfax said.
Good young bred cows and heifers sold $50-$80 per head higher, rising to $1,000-$1,100. Bred cow prices are $200 higher than last year at this time.
Cow-calf pairs fell $49.25 and were $800-$1,310.
Hog prices rise
Supply of market ready hogs was tight, lifting hog cash prices last week.
But packer profit margins were low, keeping a lid on the market.
Iowa-southern Minnesota cash hogs rose to $48 US April 24, up from $44.50 April 17.
The U.S. pork carcass cut-out value fell to $59.28 April 24, down from $61.91 April 17.
U.S. federal slaughter to April 25 was estimated at 2.145 million, up from 2.12 million the week before, and down 4.6 percent from the same week the year before.
U.S. Department of Agriculture says hog slaughter so far this year is down 5.4 percent.
Bison cow prices rise
The Canadian Bison Association said Grade A carcasses from youthful bulls in the desirable weight range in Canada were steady at $2.40-$2.75 hot hanging weight.
Heifers were $2.30-$2.65 per lb.
Cull cow and bull averages rose to $1.20 per lb. on tight supply.
Weight, quality, age and delivery location affect final price.
Lambs steady
Ontario stockyards reported 1,252 sheep and lambs and 144 goats traded April 20.
All classes of sheep, lambs and goats were steady with pre-Easter prices.
