Cattle prices rise
Fed cattle prices surged higher again last week to new record levels.
Canfax said prices opened the week $4 per hundredweight higher than the previous week’s average and held for the rest of the week.
Volumes were up 35 percent to almost 16,000 head in Alberta as sellers were more than willing to sort into pens early to find cattle that would grade.
Western Canadian packers did most of the buying, but there were strong American bids, because prices also rose in the United States.
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Cattle with a high percentage AAA and destined for special branded programs brought the highest prices with lower grading calves typically at the bottom end of the price range.
Calves were a relatively small percentage of the total offering, Canfax said.
Alberta prices March 1 were steers $117.50-$119.85 per cwt., flat rail $196.15-$198.98 and heifers $117-$121, flat rail $197.05-$199.25.
Canfax expects prices to hold strong at these levels. The weaker Canadian dollar has also helped prices here.
Some slaughter plants closed for a day last week, reducing the amount of beef in the pipeline.
Alberta’s kill is running at levels near the Christmas-New Year’s holiday slowdowns. Total beef tonnage so far this year is down three percent. Heifer weights have backed off to year-ago levels but steer weights are still 12 pounds heavier.
Last year, weights dropped through the spring by 50 lb. on a carcass
basis.
The Montreal beef wholesale is $186-$188, up $4, while the Calgary market rose $4 with handyweights at $186-$198 and heavies at $183-$185.
Wholesale beef prices in the U.S. were record high last week, partly as a result of middle meat prices, which were up due to expected stronger seasonal demand.
Analysts note the high beef prices could result in retailers featuring more pork and chicken in their promotions over the next two months.
Feeder cattle prices did not follow the fed market higher.
Buyers were reluctant to pay more for cattle that are destined for slaughter in the typically lower-price summer months.
Averages on 850 lb. steers were steady at $120.50. Calf prices were steady. Volumes were down.
Canfax said more cattle should have traded this month but 800 lb. cattle are being held back because the price hasn’t increased relative to the fed market.
Some producers who can finish their feeders are looking at that option.
Canfax said pen space should open up as spring approaches. This should boost prices soon, as will the fact that placements will soon be timed for the stronger priced late-summer, early-fall market.
However, buyers are expected to continue buying selectively given these conditions.
Cow prices were $2 per cwt. higher. Slaughter cow trade will continue at steady to higher prices with support from the fed cattle market.
In stock cow trade, bred cattle sold at steady prices.
Bred cows traded from $800-$1,500, with quotes to $1,775. Bred heifers sold from $950-$1,500. Cow-calf pairs sold from $975-$1,600.
Pork is popular
Hog prices rose every day last week.
Stronger demand for pork, due in part to near-record beef prices in the U.S. and the mad cow and foot-and-mouth disease problems in Europe, have forced American packers to pay even higher prices to get the animals they need.
Ham prices often rally at this time of year, but loins, bellies and butts also moved higher last week.
Iowa-southern Minnesota hog prices (at plant mean, 51-52 percent lean, live equivalent) increased from an average of $43.56 (US) per cwt. on Feb. 26 to $46.87per cwt. on March 1.
This week’s average hog price was 9.3 percent above last week’s level.
Some U.S. analysts consider that lean hog futures “have become heavily overbought,” meaning that futures prices have climbed higher than what the fundamental supply and demand situation would warrant.
