Weekly Regional HOG PRICE Report

Things to Consider….

The latest US Cold Storage numbers reported pork stocks at 456.5 million pounds for February, down 6.8m pounds from January and 65.1m pounds under year-ago levels. Notably, January's cold storage was revised -1.0% lower from 468.0m pounds down to 463.3m pounds.

Many pork categories recorded decreased quantities from the previous month - most notably hams, variety meats and loins however others also reported modest moves lower. It's worth noting that typically pork in cold storage increases from January into February, owing largely to increased quantities of hams following the Christmas holidays and before Easter ham buying, however this trend did not occur for 2024. For reference, the previously recorded decline in hams overall from January into February last occurred very modestly in 2020 (with the two consecutive months nearly even) and the previous time before that was in 2004 which recorded a -4.4% drop. 

Total hams overall in cold storage fell -6.9% or 5.2m pounds from January stocks with current supplies 15.6m pounds under a year earlier. Bone-in ham supplies were lightly increased on the month while the boneless variety dropped 5.5m pounds from January, and both varieties are notably under year-ago supplies. Variety meats fell 2.2m pounds in February however are up 2.4m pounds over a year earlier, while total loins in cold storage declined 1.5m pounds from last reported and are 1.7m pounds under last year. Bone-in loin supplies fell 2.8m pounds from the previous month and are 3.7m pounds under year-ago stocks, while boneless loins increased 1.2m pounds and were 2.0m pounds over last year. Other pork categories such as trimmings, spare-ribs and bone-in picnics recorded 0.7-1.0m pounds declines from January supplies, and each of these categories continue to hold well under year-ago cold storage stock levels. 

Pork bellies were up the most in February stocks, rising 1.4m pounds from January however are 7.2m pounds under last year. The category accounting for 'Other pork' increased 1.2m pounds on the latest report and is shy of 1.0m pounds higher than a year earlier while butts and unclassified pork were each up around 1.0m pounds from the previous month, and 6.3m and 1.5m pounds lower respectively.

  April 9, 2024

Weekly Hog Price Recap

Regional and national cash hogs improved much of the week with Tuesday particularly strong, while Monday and Friday recorded moderate declines to temper mid-week rises. CME cash improved daily, with moves the latter part of the week up more then earlier rises. Wholesale pork primal values improved overall with hams and bellies especially higher which helped support US pork cutout up $4.09/cwt over the previous week.

Monitored Canadian hog markets generally improved $2-$4 per hog on the week. Hylife hogs were up the most at $3.85/hog above the week previous, followed by those out of Quebec which were up $3.70/hog and Ontario which improved $3.55/hog. The OlyW 21 rose $3.20/hog while the OlyW 20 was up $3.10/hog, and BC4/TC4 increased $2.20/hog while the ML Sig 4 climbed $1.90/hog higher. In the US, Tyson hogs rose $4.85/hog while JM hog values jumped $10.70/hog from a week earlier.
 

Weekly Hog Margins

Monitored hog margins strengthened on climbing hog values and another decline in feed costs. Canadian farrow-to-finish feed costs fell around $1/hog, while those in the monitored US region declined $0.80/hog from the week previous.

Ontario hog margins strengthened $4.65 to $29.15/hog profits on the week, followed by margins off the ML Sig 4 which improved $3 to $26.60/hog profits. Hylife margins strengthened $4.90 to $25.85/hog profits, while the OlyW 20 improved $4.20 to $25.45/hog profits. Hog margins out of Quebec strengthened $4.80 to $17.55/hog profits, while OlyW 21 margins rose $4.25 to $15.50/hog profits. In the US, Tyson hog margins improved $5.65 to $35.65/hog profits while JM margins strengthened $11.50 to $35.40/hog profits for the week.
 

US Regional Margins

• Tyson: $35.66 USD X 1.3557 = $48.34 in Canadian Dollars
• Morrell: $35.40 USD X 1.3557 = $47.99 in Canadian Dollars       

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