Weekly Regional HOG PRICE Report

Things to Consider….

Wholesale pork cutout closed the week at $94.31 US per cwt down $1.44 from a week earlier however prices have mantained good value heading into the last quarter of 2024.  

Pork values carried a premium to 2023 for much of the year but slipped below last year levels from Jul to Sep.  The gap to last year however narrowed in September with the monthly average down $3.40 or 3.5% narrowing from a difference of $12.19 in July.

Strong export demand, and steady to lower kill levels have offered underlying support to the meat market which has provided strength to cash hog markets and lean hog futures.

Forward contract prices across most of the country supported by a weak Canadian dollar and seasonal feed prices have provided excellent margin opportunities for hog producers for the the remainder of 2024 and much of 2025.  Producers who are risk adverse and looking to reduce exposure for the months ahead could use this opportunity to cover margin risk

  October 8, 2024

Weekly Hog Price Recap

Cash hogs were mixed this week with regional markets not reporting late in the week skewing week over week averages. National pm prices which were reported every day this week as a result were the most representative of the actual market dropping $1.71 US per cwt from the Friday earlier. CME cash was narrowly higher ending the week 46 cents above the prior Friday's close. Wholesale pork primals were also steady again for nearly the 4th week in a row with US pork cutout up $0.74 over the previous 5 day value.

Canadian hog markets were mixed week over week with prices ranging from $2.30 lower to $2.53 higher per hog CAD. ML Sig 4 was the steadiest gaining $0.18/hog, Hylife recorded a gain of $1.51 and Olymel prices were both lower by -$2.30 (OlyW21) and -$2.22 (OlyW20). In the US, Tyson hogs dropped $1.15/hog while JM hogs gained by $2.08/hog recovering slightly from recent weakness in the Midwest market.
 

Weekly Hog Margins

Monitored Canadian hog margins were lower again by the end of the week with most Western regions recording seasonal declines of $2-$6 per hog while Eastern marekts were lower from $1 to $2 per hog. Canadian farrow-to-finish feed costs inceased substantially for the week ending Oct 4th jumping nearly $3.60/hog.  A short lived rally in soymeal caused the weekly average to rise however by the end of the week soymeal futures had returned to the same value they started the week at.  Grain markets including corn and wheat traded a similar pattern to soy with strength early to mid-week and losses towards the end.

Ontario hog margins were lower down $1.73 to $27.80/hog, ML Sig 4 (MB) margins were down $3.41 to $27.79/hog profits. Hylife margins slipped $2.08 to $24.52/hog profits and OlyW 20 hog margins weakened $5.81 to $25.43/hog profits, while Quebec hog margins were down the least at -$1.06 to $23.17 per hog.     OlyW 21 weakened the most due to a lag in hog pricing dropping $5.89 to $16.66/hog profits. In the US, Tyson hog margins dropped $3.71 to $25.45/hog profits while JM margins were slightly lower by $0.48 at $25.45/hog profits.
 

US Regional Margins

• Tyson: $ 27.80 USD X 1.3528 = $ 37.61 in Canadian Dollars
• Morrell: $ 25.45 USD X 1.3528 = $ 34.43 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.