Things to Consider….

Total US pork exports fell 55.6 million pounds or -9.9% from last reported as most major destination for US pork reported decreases for July. Compared to year ago levels, current US pork exports are 46.5 million pounds lower and 10.6 million pounds under last year-to-date.  

     US pork to mainland China once again reported the greatest decrease, down 29.8 million pounds and Hong Kong edged 233 thousand pounds lower while Taiwan increased 1.3 million pounds for an adjusted China* decline of 28.8 million pounds. Pork to China* accounted for 12.5% of the total monthly pork volume for July, compared to 16.4% in June and 24.4% on the 12-month average. US pork to Mexico notably fell 12.1 million pounds while the Philippines declined 7.8 million pounds, and both countries reported export levels stronger than prior years for this time respectively. Mexico accounted for 30.5% of the overall US pork exports compared to 24% on the 12-month average, while the Philippines accounted for 3% and is nearly on par with the annual average. 

     US pork to Canada climbed 5.6 million pounds for July, accounting for 9.3% of the total monthly volume compared to 8.1% for the 12-month average. The US imported 8.7 million pounds more pork than it exported to Canada for the month of July, down from the 14 million in the data from June. Colombia climbed 3.5 million pounds for July and the Dominican Republic increased by 2.0 million pounds, with US pork to both destinations well above prior years for this time.

  August 31, 2021


Weekly Hog Price Recap

Regional and national cash hogs declined daily, particularly mid-week. CME cash varied, starting the week with modest improvements before declining the balance of the week. Wholesale pork primals ended the week mixed however significant declines in bellies and picnics drove pork cutout $6.25/cwt under the previous week's average.  


Canadian market hog values recorded notable declines again this past week. Hog values out of Ontario dropped $8.75/hog, followed by those out of Hylife which fell more than $7/hog. The ML Sig 4 was down $4.25/hog, while hog values out of Quebec fell more than $3.25/hog from a week earlier. The OlyW 21 declined $2.75/hog, while the OlyW 20 was down more than $1.25/hog, and the BP/TC edged $0.50/hog lower. In the US, hog values out of Tyson fell near $2.75/hog while JM declined $3.50/hog from week ago levels.  

Weekly Hog Margins

Hog margins recorded another week of declines, yet again pressured by lower hog and pork values however did receive some offset support from a decrease in feed costs. Canadian farrow-to-finish feed costs fell nearly $1/hog while those in the monitored US region declined $0.75/hog from a week earlier.                 

Hog margins out of the OlyW 20 weakened $0.40 to $91/hog profits, while those out of Quebec fell $2.40 to $80.20/hog profits and Ontario declined $7.85 to $75.10/hog profits. OlyW 21 margins were down $1.75 to $71.10/hog profits, ML Sig 4 margins weakened $3.25 to $66/hog profits, while Hylife dropped $6.20 to $63.55/hog profits. In the US, hog margins out of Tyson weakened $1.40 to $70.25/hog profits while JM margins were $2.80 lower to $66/hog profits.
 

US Regional Margins

  • Tyson: $ 70.25 USD X 1.2639 = $ 88.79 in Canadian Dollars
  • Morrell: $ 65.95 USD X 1.2639 = $ 83.35 in Canadian Dollars



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