Things to Consider….

In recent weeks and months, the spread between pork and beef and hogs and cattle has garnered a fair bit of attention.  Since the beginning of 2023 the 2 major protein markets have traded in opposite directions with pork down to the lowest level since 2021 while beef has accelerated to market highs not seen since 2021.

In similar fashion the futures for feeder cattle and lean hogs have traded in opposite directions since the start of 2023.     Although the 2 protein markets do not necessarily compete head-to-head for the same spot of the plate, the strength in beef and cattle can only be seen as a positive to the overall meat protein complex providing underlying support to pork in the months ahead.

 



  May 30, 2023




 

Weekly Hog Price Recap

Cash hogs fell for much of the week, with national cash down near daily though up significantly Tuesday while regional cash went unreported Monday & Friday. CME cash improved near daily, recording a moderate decline Friday. Most wholesale pork values averaged above the previous week however significantly lower ham and belly values weighed US pork cutout $1.35/cwt under the previous week's average.



Monitored Canadian hog markets generally rose $3-9/hog this past week, excluding values out of Quebec which were unchanged from the previous week. Hog values out of the OlyW 20 jumped $9.25/hog, followed by values out of Ontario which were up $7.70/hog. BP4/TC4 was up shy of $7/hog and the ML Sig 4 rose $6.30/hog, while the OlyW 21 improved $5.70/hog and Hylife climbed $3.30/hog higher. In the US, Tyson hogs jumped $7.60/hog, while JM slipped $1.85/hog from the previous week. 

Weekly Hog Margins

Most monitored hog margins strengthened significantly on improved hog values however were tempered by a rise in feed costs. Canadian farrow-to-finish feed costs rose $1.60/hog, while those in the monitored US region were up $0.60/hog from the previous week.

ML Sig 4 hog margins strengthened $4.70 to $6.10/hog profits, followed by those out of Hylife which improved $1.70 to nearly $2.25/hog profits. Hog margins out of Ontario improved $6.10 to $0.65/hog losses, while those off the OlyW 20 strengthened $7.65 to $4.70/hog losses. OlyW 21 margins recovered $4.10 to $15.70/hog losses while hog margins out of Quebec weakened $1.60 to $28.85/hog losses. In the US, Tyson strengthened $7 to $18.80/hog profits while JM weakened $2.45 to $18/hog profits for the week.
 

US Regional Margins

  • Tyson: $18.79 USD X 1.3584 = $ 25.52 in Canadian Dollars
  • Morrell: $17.97 USD X 1.3584 = $ 24.41 in Canadian Dollars



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