Pork and beef prices fall
A drop in wholesale pork prices in the United States led to lower hog prices last week as packers tried to maintain their profits.
Top hog prices declined to $27.50 (U.S.) per hundredweight live Feb. 19 at Omaha, Nebraska. The U.S. Department of Agriculture cold storage report, which showed large storage stocks of pork at the beginning of February, could further lower hog prices.
Ontario and Quebec hog prices climbed as slaughter plants competed for hogs.
In Manitoba, Index 100 hog prices declined from $108.95 per hundred kilograms (including premiums) on Feb. 15 to $104.20 per ckg on Feb. 17 as local prices responded to the weaker U.S. market.
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U.S. slaughter under federal inspection was estimated at 1.92 million, up 1.9 percent from a year earlier.
The U.S. breeding herd appears to be downsizing. Sow slaughter for the four weeks ending Feb. 6 was up about 15 percent from the year earlier. Gilt slaughter ran more than one percent above a year earlier for the period since Dec. 1.
Cattle prices dip
Slow beef sales and packers with adequate supplies last week forced fed cattle prices lower.
Packers are trying to drive up wholesale beef prices by reducing supply.
Average prices were $2 per hundredweight lower compared to last week, with most of the trade between $85.50 and $87. Some producers saw the bids and decided not to sell.
Prices Feb. 18 were steers $85.00-$86.75 per cwt., flat rail $147.90 and heifers $85.75-$87.70, flat rail $147-$149.55.
Wholesale beef prices are generally steady for this week with Montreal at $154-$157 per cwt. on a net basis and Calgary steady to $1 lower at $150-$158 on handyweight steers. Heavyweights are about $8 lower.
Steer carcass weights have snuck back over 800 pounds this month after spending January below 800 lb. Canfax said producers need to keep moving cattle to stay current.
Prices are not expected to rise this week unless beef movement and kills improve. Movement is expected to improve around mid-March.
Cattle quality is an issue so keep that in mind when judging prices. A few fall-placed calves will be showing up over the next few weeks and usually they get a premium to older cattle.
The fed market conditions also hurt cow prices and average bids fell $1-$2 per cwt. last week.
Good D1, 2 cows sold in a range of $50-$58 per cwt., but some higher sales were reported early in the week.
Average feeder cattle prices were barely steady last week, with price fluctuations on many weights. Prices at the end of the week were $3-$5 per cwt. lower.
Trouble in the fed cattle market followed through to put pressure on heavier yearling prices. At the same time, quality cattle were harder to find and buyers paid good prices for the right types. Volumes were up.
Canfax said it will be difficult to hang on to current price levels. Expect wider price ranges based on quality. Buyers will be closely watching the fed market for some direction. Break-evens have climbed to a point where the margins are slim.
Bred cows and heifers were mostly steady last week. Bred cows were priced from $500-$1,250. Bred heifers ranged from $750-$1,200. Cow-calf pairs weren’t well quoted on volume, but prices were from $850-$1,200.
