Fed cattle prices strong
Fed steers were up $2.75 per hundredweight while fed heifers were up $1.50 last week.
Feeder cattle were $1-$2 per cwt. higher with light cattle steady to $5 higher. Cow prices were $1 higher.
Canfax said the bulk of the fed cattle price strength came in the first half of the week with a weaker market by March 8.
A record high was posted March 7 with a live trade of $125 per cwt. on high yielding yearling cattle. More calves were in the week’s offering and usually traded $2 under their yearling counterparts.
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Canfax said packers are building their live inventory.
Prices March 8 were steers $117.60-$121 per cwt., flat rail $197.85-$201 and heifers $117.60-$120.30, flat rail $198.85-$199.85.
Barring more bad storms in the United States, Canfax said the peak of the season’s market might have been posted last week.
But with feedlots well in control of their inventory and with lighter calves in the mix, fed cattle prices should remain high.
The usual rally in consumer beef demand in spring should start in April. Also, demand from packers in the U.S. Pacific Northwest should help support prices over the next month.
Canfax said high beef prices are shocking retail buyers who have slowed beef movement. Retailers are keeping inventories “hand to mouth.”
Montreal wholesale prices are up $4-$5, to $192-$193 per cwt.
Calgary wholesale also rose $4-$5 with prices on handyweight carcasses at $192-$202 and heavyweights at $189-$192.
The record high fed market failed to spark a significant rally in feeder cattle prices. Buyers are trying to avoid buying cattle that will be ready for market in the expected weak June-July period, but there are lots of sellers offering cattle.
Most calves traded $1-$2 higher.
Canfax said it will be awhile before feeder cattle see higher prices. Buyers might be willing to pay more in a few weeks when they will be feeding for the stronger end-of-summer market.
Bred cows traded from $800-$1,540 (mostly $1,100-$1,400) and bred heifers sold from $900-$1,575 (bulk at $1,150-$1,400). Cow-calf pairs sold from $1,000-$1,650.
The Alberta-Saskatchewan cattle- on-feed report for March 1 showed the number in feedlots up one percent from last month, but eight percent lower than the same time last year.
Placements were large in February, up 29 percent compared to the same month last year. Marketings were also up as feedlots took advantage of the high cash market. February saw a marketing increase of one percent over the same time period last year.
Hog prices falling
After peaking at mid-week, American hog prices ended their three-week run of daily price increases.
It appears packers decided that offering higher prices was not getting more hogs, so they slowed kill lines.
Iowa-southern Minnesota hog prices (at plant mean, 51-52 percent lean, live equivalent) decreased from an average of $48.26 per cwt. on March 6 to $46.64 on March 9.
Despite the slide, this week’s average hog price was 5.5 percent above the previous week’s level.
Manitoba Agriculture said there is speculation that a drop in prices will spook producers, who have been holding back in hopes of higher prices. A little price retreat will cause some panic selling and a faster fall in hog prices.
But University of Missouri agricultural economist Ron Plain says in his weekly report that U.S. hog weights are only slightly heavier than last year at this time, indicating that producers are current in their marketing and have not held back animals.
