CNS Canada –– The Canadian hog market is gearing up to start bringing home the bacon.
Weekly cash hog prices are higher on continued stronger seasonal pork cutout values, with lower supply creating better prices.
“Prices generally do increase over the summer,” said Brad Marceniuk, a provincial livestock economist in Saskatoon. “I expect hog prices to be pretty good this summer… prices have been moving higher.”
In Canada, the Signature No. 3 (Maple Leaf) Index 100 daily price was $181.45 per 100 kilograms on Friday, up $6.80 from the previous Friday.
U.S. daily average cash hog prices also moved higher, ending the week up, week-over-week.
“(Average) prices are in the $170 (range) which is very good. Producers are making money,” Marceniuk said.
Supplies normally increase into the fall, typically bringing down prices in the fourth quarter, Marceniuk said.
“Everything looks reasonable overall with exports. I don’t see any big changes in the short term,” said Marceniuk.
Manitoba hog farmers are experiencing a porcine epidemic diarrhea (PED) scare, with three confirmed on-farm cases reported in the last two weeks. Until last week the province hadn’t reported any new cases since January 2015.
About 50 per cent of U.S. hog farms have or have had PED, so the market has already adjusted. Since Canada’s market price is based on U.S. dollars, prices are expected to stay the same.
“While it is an individual concern for the producer, it’s not necessarily a market shock in Canada, price-wise,” said Gary Stordy of the Canadian Pork Council.
— Erin DeBooy writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.