Hog futures are trading higher at midday with ongoing signs of increased demand coming back to the pork market. In the last six months of 2023, negotiated cash hog prices collapsed from over $100 to just below $44 and they trailed formula prices by as much as $21 at the end of the year. As of this morning, USDA reported negotiated cash hogs at $71.59. Packers are clearly more interested in bidding for negotiated supply than they were in late 2023 and that is a bullish sign of increased demand for hogs. Net sales of pork for 2024 were down 14% from the previous week and 17% from the prior 4-week average. The three largest increases were in Mexico, Japan, and Canada. So far in 2024, pork exports are up 10% from a year ago. Export Adjustment: Accumulated exports of pork were adjusted lower for China and Mexico for the week ended Feb. 8. These shipments were reported in error.
Cash hog prices on the National morning report are lower, the morning cutout value is higher.
The Canadian Dollar is trading lower against the US dollar at midday.
For the week ending Feb 23, the Western Hog Exchange OlyWest 20 weekly price is $1.83/kg dressed, the OlyWest 21 weekly price is $2.01/kg dressed, and the BP4 price is $1.83/kg dressed. This is Kerrie Simpson reporting from the Western Hog Exchange