Things to Consider….
The latest data for Canadian pork exports recorded March at 137.1 million KGM, the second highest historically, up +17.6% from February and –1.0% from year ago levels which represent the historical high. Export values declined overall at $3.05/KGM, down $0.14 or -4.3% from the previous month and $0.28 or -8.3% under last year.
Notably Canadian pork exports to the US reached a new historical high of 45.2 million KGM, surpassing the previous high recorded in October 2014 at 44.2 million KGM.
Total swine carcass and cut exports increased +17.0% from February to 85.6 million KGM for March, bringing them +3.4% over a year earlier. For perspective, their March values at $3.37/KGM declined -6.3% from Feb and -11.1% under last year.
Total ham exports increased +11.6% for March at 28.0 million KGM bringing them -9.0% under last year. For perspective they valued at $2.62/KGM for March, climbing +3.1% from February however was -11.8% under year ago levels.
Pork belly exports surged +29.3% for March to 2.4 million KGM and is +3.1% over last year. Pork belly values for March at $6.54/KGM edged -3.7% lower from February however were +8.7% over last year.
Pork shoulder exports increased +5.2% for March at 68.3 thousand KGM however is -35.7% under year ago levels. Export pork shoulder values were $5.46/KGM for March, which was -26.9% under February and -25.1% under year ago levels.
Total edible swine offal was recorded at 10.9 million KGM for March, up +33.4% from February and -6.8% from last year. For perspective, edible swine offal export values at $1.99/KGM for March declined -4.4% on the month and -7.8% under last year.
Total pig fat and lard were recorded at 10.0 million KGM for March, up +22.8% on the month but were -5.9% compared to year ago levels. For perspective, pig fat and lard export values for March were $1.85/KGM, up +3.4 from February and +29.1% compared to year ago levels.
Pork values as measured by the USDA cut-out have gained $14 in the last 2 weeks providing underlying support to cash and futures markets. Cut-out traditionally remains firm during the later summer months but will depend on foreign buying from major importers like Mexico and China.