Things to Consider….

  • The latest US Cold Storage numbers reported pork stocks at 541.0 million pounds for June, down 5.1 million pounds from May and 99.1 million pounds over year ago levels. For reference, total pork in cold storage for May was revised higher from 543.1 to 546.1 million pounds. 
  • Lessened amounts of pork in cold storage overall were offset by the seasonal rise of total hams and an increase in variety meats. 
  • Total hams rose 12.7 million pounds from May levels with the bone-in and boneless varieties up near evenly, and total hams were 8.7 million pounds over a year earlier. Historically, hams in cold storage climb from April onward to peak in September. Variety meats rose 2.2 million pounds or 10.0% from last reported, and 4.0 million pounds or +19.6% over last year. Trimmings also climbed in June, up 476 thousand pounds from May and 11.2 million pounds over last year. 
  • Spare-ribs declined 6.1 million pounds for June bringing them 39.7 million pounds over last year. Total loins fell 5.0 million pounds from last reported, with the boneless variety accounting for the overall decline, and total loins are 1.4 million over last year. Other pork slipped 2.6 million pounds for June and are 1.6 over last year, while butts fell 2.3 million pounds on the latest report bringing them 7.5 million pounds over year ago levels. Picnics edged 957 thousand pounds lower for June however are up 3.3 million pounds over last year.

  July 26, 2022

Weekly Hog Price Recap

Cash hogs varied and declined for much of the week though recorded some mid-week gains, with national cash recording particularly large daily swings while regional cash went unreported Monday. Alternatively, CME cash improved daily at good to moderate levels. Wholesale pork primal values improved on the week with bellies especially stronger, supporting US pork cutout $5.92/cwt over the previous week's average.

Market hog values improved significantly, rising generally $5-$10 per hog. The OlyW 21 rose $10.75/hog, followed by values out of Quebec which were up $8.80/hog and the OlyW 20 which rose $8.45/hog. The ML Sig 4 was up shy of $8/hog, while hog values out of Hylife and Ontario were each up around $6.50/hog and BP/TC was $4.55/hog higher. In the US, Tyson edged $0.65/hog higher while JM increased $5/hog from week ago levels. 

Weekly Hog Margins

Monitored Canadian hog margins strengthened on strongly improved hog values and were further supported by a reduction in feed costs. Canadian farrow-to-finish feed costs dropped $3.95/hog, while those in the monitored US region fell $2.30/hog from the week previous.

Hog margins out the OlyW20 surged $12.40 to $98.50/hog profits on the week, followed by those out of Ontario which strengthened $10.55 to $93.90/hog profits. Hog margins out of the ML Sig 4 improved shy of $11.90 to $77.10/hog profits and Hylife margins strengthened $10.50 to $74.25/hog profits, while OlyW 21 margins rose $14.65 to $66.45/hog profits and those out of Quebec strengthened $12.75 to $51.30/hog profits. In the US hog margins improved more moderately, with Tyson up $3 to $102.45/hog profits while JM strengthened $7.30 to $107.65/hog profits from the previous week.

US Regional Margins

  • Tyson: $ 102.45 USD x 1.2901 = $ 132.17 CAD
  • Morrell: $ 107.63 USD x 1.2901 = $ 138.85 CAD

Disclaimer: Commodity Professionals Inc. presents this report as a snapshot of the market using current information available at the time of the report. These findings are for informational purposes only and should not be reproduced or transmitted by any means without permission.  Commodity Professionals Inc. does not guarantee, and accepts no legal liability arising from or connected to, the accuracy, reliability, or completeness of any material contained in the publication.