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Market Commentary: Friday, May 26/17

Transcript

Hog futures closed mostly higher. Following the lackluster interest seen through the morning, buyer support has moved into the lean hog complex as cash support has developed during the morning reports. This has moved all nearby futures contracts higher and sparked increased underlying commercial support through the complex. A fundamental move higher through the end of the month could bring increased technical and fundamental interest back into the market, which may bring even more upward market potential during the summer months.

Cash hog bids are expected to be steady. Looking into June, the historical odds for higher cash hog prices are quite good. June monthly average has been higher than May more than 70 percent of the time over the last 10 years. Cash prices are higher on the National and on the Iowa Minnesota morning reports. The cutout value is higher at midday.

The Canadian dollar is trading higher against the US dollar.

For Friday, May 26, the Western Hog Exchange OlyWest price is $1.798/kg dressed and the OlyWest plus price is $1.808/kg dressed.  The OlyWest weekly price is $1.796/kg dressed and the OlyWest plus weekly price is $1.806/kg dressed.  This is Pat Matthezing reporting from the Western Hog Exchange.  

Red Deer Barn Change/Cull Animal Notice

Pork Plant Parade Shouldn't Swamp Hog Prices

The US pork industry is gearing up for major expansion, with new plants coming online or ramping up in Iowa, Michigan and Minnesota, but Spam maker Hormel Foods (HRL) doesn't expect that to meaningfully boost prices for hogs. Even though more slaughterhouses will be competing for hogs to process, Hormel executives believe farmers' efforts to expand their herds work out to sufficient supply to go around. The plants' fluctuating needs for hogs could rattle prices on a day-to-day or week-to-week basis, but a long-term rally's unlikely, Hormel officials say on investor call.

FEED WITHDRAWAL & BRISKET/HEAD CONTAMINATION

March 20, 2017

Due to an increased number of incidents of full stomachs on the kill floor in 2017, we are asking producers to review their feed withdrawal practices.   Any feed left in the gut goes entirely to waste and has a negative impact on your dressing percentage and feed conversion.  Failing to properly withdraw feed from hogs before slaughter can increase transportation losses as they are more prone to vomiting, harder to move and more susceptible to die in transit.  The increased skin, brisket and head contaminations further complicate packer operations causing line stoppages.  These contaminations also threaten Canada’s pork export markets by reducing pork safety.

Please ensure you are allowing enough time (12 hours recommended) before the expected slaughter time.  Check with Paul Aschenbrenner (587-315-8972) at the barn for your arrival schedule and slaughter time.

Red Deer PEDv Biosecurity Procedures

 (Updated March 2014)

These procedures are necessary to help prevent the spread of PEDv from the processing plant.

The transporter is a key figure in breaking the contamination cycle.

After leaving the processing plant yard; it is the driver’s responsibility to ensure his trailer is thoroughly cleaned and disinfected prior to returning to the farm or traveling to another farm for reloading.                     

PEDv Preventative Protocol

  1. Driver to arrive with at least one pair of disposable footwear
  2. Driver should place disposable boot covers on prior to exiting the cab of his truck.
  3. *Driver should not go to the office/scale house unless he is wearing disposable boot covers or a dedicated set of boots that will not enter the trailer and will be washed and disinfected separately.*

  4. Driver will be supplied, on request, with two pairs of clean disposable boot covers.
  5. Driver should use one pair of disposable boot covers to walk from the cab of the truck to the unloading dock.
  6. Driver may proceed to the back of truck and wait for WHE employee to process the paperwork.
  7. Once the Driver gets the okay to begin unloading, they should remove their plastic boot covers, so that his boots or disposable footwear are used to step on to his trailer to unload.
  8. The driver will handle hogs on the trailer up to the unloading dock. WHE personnel will handle hogs on the unloading dock into the barn.
  9. Once the Driver enters the trailer, he should not leave the trailer unless he puts on boot covers.
  10. After unloading, the driver should step down and remove his dirty boots and coveralls before putting his plastic boot-covered cab shoes on. Dirty boots and coveralls should go into a tote for washing and disinfection.
  11. Driver needs to inform a WHE employee of DOA’s and or animals to be euthanized.
  12. At the dead pile, or manure clean out, the driver should again wear disposable boot covers while outside his cab or trailer. While in the cab or on the trailer the boot covers should be removed.
  13. Drivers utilizing this protocol would dispose of all boot covers in a designated trash cans before leaving the property.
  14. WHE employee will deliver paperwork to the truck if required.
  15. Driver should leave the premises as soon as possible.

This procedure is intended to minimize the contamination of trailers leaving the plant. Walking in the trailer with dirty contaminated boots will potentially contaminate the trailer.

Upon departure; it is the driver’s responsibility to ensure his trailer is thoroughly cleaned and disinfected prior to returning to the farm or traveling to another farm for reloading.

PEDv BIOSECURITY PROTOCOL PROCEDURE NOTICE

February 6, 2014

Dear Producer,

PEDv (PORCINE EPIDEMIC DIARRHEA VIRUS) BIOSECURITY PROTOCOL PROCEDURE NOTICE

Attached are the procedures for producers and transporters to help prevent the spread of PEDv from the processing plant.  We are asking that you pay special attention to these protocol procedures because the key to breaking the contamination cycle for PEDv remains with the transporter.

In the U.S. where PEDv first surfaced in North America according to the Daily Livestock Report, in mid-January AASV (American Association of Swine Veterinarians) reports that there are well over 200 new cases per week.  As of today’s date in Ontario there have been 8 cases of PEDv confirmed.  To date no PEDv cases have been discovered in Alberta.  The Western Hog Exchange (WHE) and its industry partners must play a role in keeping it that way.  The WHE is participating with a team consisting of pork producers, veterinarians, processors and the representatives of AARD (Alberta Agriculture and Rural Development) to refine the specific biosecurity approach.

The WHE has implemented extra cleaning protocols at our WHE assembly yards in Red Deer and Lethbridge.  Our staffs at these facilities have been instructed to keep truck contact to a minimum.

Good biosecurity practices on farms will aid in reducing the risk of animals becoming infected with PEDv.  Of equal importance are precautions that should be practiced in the transportation of your animals to the processing facility.
 
The WHE is distributing suggested protocols to its customers in order to help provide protection against PEDv.  Please review the attached document with your barn staff and with those who transport your animals.

Strict transportation biosecurity is critical to preventing PEDv.

Your cooperation and participation in these biosecurity protocol procedures is greatly appreciated and will go a long ways towards helping to keep PEDv out of Alberta.

Thank you.


Western Hog Exchange