Things to Consider…. The latest US & Canadian Hogs report released by the USDA August 28th generally reported decreased North American inventories from the previous report, while holding above year-ago inventories. North American all hogs and pigs reported at 88.5 million head was down 955 thousand head from the previous report but 1.1 million head over last year. A closer look at the breeding herd specifically reflects a modest increase from the last report, up 12 thousand head from the back-half of 2023, with the current kept for breeding number 209 thousand head under last year. North American market hogs reported at 81.2 million head was down 967 thousand head from the previous report but 1.3 million head over last year. Lighter weight groups captured on the report climbed higher than last reported while heavier market-ready groups recorded notable reductions, however all market hog weight groups were up +1% to +2.6% compared to last year.
Sows farrowed in North America declined 196 thousand head from the previous report and 86 thousand head lower than the same period in 2023. The US & Canadian pig crop fell 2.9 million head from the previous reporting period, though is up 1.1 million head from a year earlier.
Canadian All Hogs and Pigs overall climbed +0.1% or 20 thousand head from last reported to 13,995 thousand head for the July 1st inventory, which brings them 180 thousand head or +1.3% over last year. Canada's breeding herd edged 3 thousand head higher or +0.2% from the January 1st period, with the current inventory 11 thousand head or -0.9% under the year previous. Canadian market hog inventories were up 17 thousand head or +0.1% from the previous report, and 191 thousand head or +1.5% above last year. The lightest weight group and the heaviest market weight group both rose from last reported and were above year-ago inventories, however the remaining two categories for markets 50-179 pounds were lower compared both to last reported and a year earlier. Sows farrowed in Canada declined 13 thousand head or -1.0% from last reported and is 12 thousand head or -1.0% under last year. Canada's pig crop dropped 217 thousand head or -1.4% from the previous report, with the current pig crop 164 thousand head or +1.1% under last year.
| September 3, 2024 
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Weekly Hog Price Recap Cash hogs fell most of the week, Wednesday was down the most in both national and regional cash with a generally modest partial recovery Friday. CME cash declined daily, recording mostly steady moves lower. Most wholesale pork primal values were lower, only hams and picnics improved on the week, with US pork cutout $1.04/cwt under the previous week's average.
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Cash hogs declined generally $5-$7 per hog on the week. Ontario hogs declined $7.20/hog, while hogs out off the OlyW 21 fell $7/hog and the OlyW 20 was shy of $7/hog lower. The ML Sig 4 fell $6.75/hog and Hylife was down $6.25/hog, while Quebec hogs declined $5.80/hog and BP4/TC4 fell $4.90/hog. In the US, Tyson hogs fell $7.40/hog while JM hogs dropped $8.50/hog lower than the previous week.
 
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Weekly Hog Margins Monitored Canadian hog margins weakened on another significant decline in hog values, though feed costs recorded a notable reduction from the previous week. Canadian farrow-to-finish feed costs fell $1.10/hog while those out of the monitored US region were up a modest $0.05/hog from a week earlier. OlyW 20 hog margins weakened $5.80 to $47.65/hog profits followed by ML Sig 4 margins and those out of Ontario, down $5.70 to $44.15/hog profits and $6.10 weaker to $44/hog profits respectively. Hylife margins fell $5.15 to $38.35/hog profits while OlyW 21 margins weakened $5.90 to $35.65/hog profits and Quebec hog margins were down $4.70 to $34.45/hog profits. In the US, Tyson hog margins dropped $7.45 to $42.55/hog profits while JM margins weakened $8.55 to $30.10/hog profits.
 US Regional Margins - Tyson: $ 42.57 USD X 1.3475 = $ 57.36 in Canadian Dollars
- Morrell: $ 30.10 USD X 1.3475 = $ 40.56 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. |