Margins for western Canadian cattle producers are likely to remain under pressure but Canadian hog producers should enjoy relatively better times through the end of this year, according to the latest livestock outlook from Farm Credit Canada.
Released Tuesday, the outlook projects the 2021 Alberta price for a fed steer at $155/cwt, up slightly from the year-to-date price of $150 but still below the five-year average of $160. Ontario fed steer prices are projected to average the same, although that is $5 above the provincial average. Meanwhile, the average market hog price for Ontario and Manitoba this year is estimated at $95 and $90/cwt, both $15 above the average.
In its accompanying commentary, FCC said prices for hogs in both Manitoba and Ontario should continue to exceed their five-year averages on the strength of global and domestic demand. “Chinese pork imports have largely driven strong global demand and continued strength in North American hog prices,” it said.
On the other hand, the outlook for cattle in Western Canada is being clouded by drought which has pushed feed prices higher and resulted in increased herd liquidation, which is weighing on prices.