Cattle prices began well
Fed cattle prices started out well last week, rising as much as $2 per hundredweight higher than the week before.
But the Chicago futures market was limit down Feb. 19 and 20, and boxed beef prices fell as well.
Canfax said prices Feb. 19 were $81.30-$85.30 per cwt. and heifers were $81-$85.05.
There are still large supplies of market-ready cattle in the U.S. weighing down the market. With the drop in beef prices, packers were expected to slow kill lines this week to tighten up beef supplies. All this points to struggling prices for the next couple of weeks, Canfax said.
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“An already strong basis level in Western Canada, only $2.50 under, has prices here about as good as we can expect considering the problems south of the border.”
The outlook this week is for fed cattle price in the low $80s but analysts still believe prices should pick up later in the year.
The cow trade saw prices strengthen about $4 per cwt. last week and the outlook is for steady prices.
Feeders showed strong gains in Alberta, rising $1-$3 per cwt. on most weight classes. But in Saskatchewan, most heifer classes fell.
Strong outlook
Demand for cattle to put on grass is strong.
Canfax said the outlook is for continued price strength, but expect some pressure on heavier cattle if the fed market continues in trouble.
The stock cow trade saw the bulk of bred cows trade at $850-$1,050 a head, bred heifers at $850-$1,000 and cow-calf pairs at $900-$1,170.
Hog prices fall
Cash hog prices edged up last week but then fell at the beginning of this week after the United States Department of Agriculture issued a cold storage report that showed increases in pork bellies, hams and total pork stocks in warehouses.
The rising Canadian dollar has also pressured prices here.
USDA announced Feb. 20 that it would buy $30 million of U.S. pork for domestic food assistance but this purchase is not expected to have a major impact on hog prices. An agreement was also announced Feb. 20 allowing the U.S. to export pork to Taiwan.
This information will temper the current price drop.
