Things to Consider….

   The latest US livestock and meat trade data reflected total US pork exports at 531.1 million pounds for June, down 17.6 million pounds from May levels and 32.7 million pounds under last year.

     Most major destinations for US pork generally recorded declined volume on the report. US pork to Mexico recorded the largest drop, down 14.7 million pounds from May and reached a new historical high for the month of June historically. US pork to Japan fell 4.1 million pounds, and though continuing below many recent historical years for this time has returned to more typical levels. US pork to the Dominican Republic dropped 3.5 million pounds or -13.9% for June, coming down from the strong historical highs recorded in the previous two reports though continuing at highs well above typical levels and nearly double the volume of last year. Other destinations for US pork such as South Korea, Australia and Canada each recorded 1-2 million pounds declines from last reported.

     Offsetting some of the earlier mentioned declines were increased amounts to Colombia and China*. US pork to Colombia rose 3.7 million pounds and is among the strongest recorded historically, while China* (including Hong Kong and Taiwan) increased 3.6 million pounds from last reported. Other notable destinations recorded generally 1-1.6 million pound declines such as the Philippines, Guatemala, and Chile which continues among 10-year lows.

     Total US pork imports slipped 2.1 million pounds or –1.7% lower than May, bringing current imports 23.0 million pounds or +24.2% above year ago levels. Imports from Canada declined 1.7 million pounds or -2.3% for June, bringing them 15.3 million pounds or +27.3 over year ago levels. Notably, the US imported 32.3 million pounds more pork from Canada than it exported to the country for the month of June. US pork imports from Denmark fell 4.5 million pounds or –36% from a month earlier though are +10.3% over last year, while volume from Mexico declined 1.6 million pounds or -15.9% in June but is +12.1% over last year. Increased imports from Brazil, Italy and Hungary offset some of the lessened amounts, with each generally up 1-2 million pounds from last reported.

  August 2, 2022

Weekly Hog Price Recap

Regional and national cash hogs varied though declined for much of the week, with late-week declines particularly heavy while mid-week gains were also significant. Alternatively, CME cash improved daily at good to moderate levels. Wholesale pork primal values were mixed throughout the week with bellies especially stronger and higher hams and picnics helped US pork cutout finish the week $3.28/cwt over the previous week's average.

Canadian market hog values again improved significantly this past week, rising as much as $8 per hog. BP/TC rose $8/hog, while hog values out of Ontario were up just shy of $8 and other markets such at the OlyW 21 & 20 and hog values out of Quebec were each up around $7/hog. The ML Sig 4 was up $4.75/hog, while hog values out of Hylife were up $4.50/hog. In the US, Tyson rose $8.20/hog higher while JM slipped near $1/hog from week ago levels. 

Weekly Hog Margins

Monitored Canadian hog margins strengthened on strongly improved hog values despite an increase in feed costs. Canadian farrow-to-finish feed costs rose $3.15/hog, while those in the monitored US region were up $2.65/hog from the week previous. 

Hog margins out the OlyW20 improved $3.95 to $102.45/hog profits on the week, followed by those out of Ontario which strengthened $4.75 to $98.60/hog profits. Hog margins out of the ML Sig 4 improved $1.60 to $78.70/hog profits and Hylife margins were up $1.30 to $75.55/hog profits, while OlyW 21 margins strengthened $4.15 to $70.60/hog profits and those out of Quebec improved $3.90 to $55.20/hog profits. In the US, Tyson margins strengthened $5.55 to $108/hog profits while JM weakened $3.60 to $104/hog profits from the previous week.
 

  US Regional Margins

• Tyson: $ 107.98 USD X 1.2853 = $ 138.79 in Canadian Dollars
• Morrell: $ 104.05 USD X 1.2853 = $ 133.74 in Canadian Dollars

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.