Steve Dzizer Alberta Pork Pricing & Marketing Report: week of January 23-27, 2012
Prepared by Phoenix AgriTec Inc.
The cash hog market worked its way higher last week on supportive ideas of growing product demand due to a consistent increase in wholesale pork cutout values. Market participants looked at tighter supplies as a bullish factor since production began to drop off recently from early winter highs. Highly priced beef products are also adding some incentive to the pork complex as consumers may start leaning towards purchasing more pork in an attempt to lower their rising food costs.
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Gains were limited by thin processing margins which had packers uneasy on spending more for their live product. Cash prices rose steady the first half of the week, turning flat to higher during the latter half. Country movement was said to be light to average as tighter supplies of slaughter ready hogs and bargain shopping packers weighed against one another resulting in a short-term sideways price trend.
The foreign exchange rate was reported lower as the Loonie gained strength due to climbing crude oil prices, and positive world economic outlooks following successful bond debt auctions in Spain and France. For the week ending Jan 20 the 5-day average Bank of Canada noon rate was 1.0136 CAN/US, down 0.0078 basis points.
| Olywest 10/11 C$/ckg |
C$ Per Hog |
Olywest 10/11 Plus C$/ckg | C$ Per Hog |
ML Sig 3 C$/ckg |
C$ Per Hog | ML Sig#4 C$/ckg |
C$ Per Hog |
BoC Noon Rate |
Tyson U$/hog |
|
| 2011 Year to Date 2012 Last 30 days Last Week Jan 16 to 20 |
158.13 152.28 150.82 154.49 |
171.60 165.37 163.79 167.76 |
159.04 153.28 151.82 155.49 |
172.68 166.45 164.87 168.84 |
158.23 153.54 151.50 155.25 |
171.25 166.28 164.08 168.11 |
157.50 151.80 151.41 153.08 |
169.84 163.77 163.35 165.13 |
0.9889 1.0172 1.0186 1.0136 |
183.96 170.44 170.40 171.39 |
Compared to the previous week Canadian cash hog prices rose slightly on increased optimism that seasonal demand will weigh against late winter supplies which forced packers to raise their bids in order to secure enough hogs to fill their weekly schedules. Olymel climbed $0.87 CAN per hog, and the Maple Leaf Sig3 rose $0.21 CAN per hog. The Maple Leaf Sig4 was reported $0.98 CAN per hog higher, while the VMR slipped $0.26 US per hog.
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Wholesale pork cutout on average rose $1.10 which helped support the cash market throughout the week. Loins and bellies were the main contributors to the overall rise in cutout as they gained $5.01 and $3.60 respectively. Average barrow and gilt weights were reported at 276.4 lbs, down 1.6 from last week and +1.6 from last year which further supported ideas of tightening supplies.
