Good prices for beef
Fed cattle prices soared last week as Canadian packers scrambled to take advantage of demand for beef in the United States, said Canfax.
Prices in Alberta topped $100 per hundredweight March 8 and 9 and for the week were $4-$4.50 per cwt. higher. The higher prices drew out more cattle.
Prices March 9 were steers $96.75-$100.45 per cwt., flat rail $166-$167.15 and heifers $95.25-$100.75, flat rail $167.15.
In the U.S. market, prices were $2 (U.S.) higher. Canfax said beef sales into the U.S. were substantially stronger with huge increases in the cutout values compared to last week.
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Canadian wholesale beef prices are expected to follow higher.
The Montreal wholesale price is up $3 to $161 for this week’s deliveries but Canfax said it will need to increase significantly next week.
The Calgary wholesale for this week is up $4-$5 with handyweight steers now in a range of $160-$173 per cwt. Discounts remain for heavy carcasses.
Canfax expects the hot market to last at least a couple of weeks.
Feedlots are current and are even pulling cattle ahead of schedule. Carcass weights should continue to decline and reduce potential future tonnage.
Beef prices and movement will be key factors in holding these strong prices into April.
Slaughter cows traded steady with bulk sales reported from $55-$60 on good quality types. A few grain-fed types traded into the low $60s.
Supplies available for slaughter are expected to decline through the rest of this month and prices should gradually increase.
Feeder cattle prices were steady to higher with averages $1- $2 per cwt. higher on heavier weights.
Lighter cattle sold steady but feeders in good condition were several dollars higher thanks to the strong fed cattle market.
Buyers are still looking to fill pens but some feedlots are reportedly full.
Canfax said quality is expected to be varied over the next while but good types should continue to sell at steady to higher prices. Numbers on offer will remain steady over the next two to three weeks.
In stock cow trade, bred cattle and pairs were lightly tested. Bred cows were $500-$1,450. Good quality cows were $1,200-$1,450 and bred heifers $500- $1,200 on a light test. Cow-calf pairs ranged from $600-$1,550.
Contract highs for hogs
Early in the week, investment purchasing by funds, and the rollover of contracts from April into June, supported price increases in June and declines in the April contract.
The June contract hit a high of $70 (U.S.), which is psychologically important to technical traders.
Futures prices were also supported by the prediction that weekly slaughter numbers will decline and prices will rise in the next quarter.
Pork belly futures prices also reached new contract highs March 6, then declined by March 7 on profit taking and light offerings but recovered March 9.
In the cash hog market, the Iowa-southern Minnesota hog price (plant top, 51-52 percent lean, live equivalent) ranged from $45 to $46 (U.S.) per cwt. during the week.
On March 10 the range was $34.25Ð$46 with a mean of $42.44, up 84 cents from the previous Friday.
Cash markets are expected to improve this week, as pork should look attractive compared to the higher priced beef.
The average Manitoba Index 100 hog prices, including premiums, was estimated at $155 per 100 kilograms.
