Alberta Pork Weekly Report
April 12, 2022
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Announcements, news and reminders
From Alberta Pork
AFSC deadlines upcoming – end of week
Sat., Apr. 30 is the deadline for three services offered by the Agriculture Financial Services Corporation (AFSC):
- AgriStability: 2022 enrolment and fee due (no penalty)
- Perennial Crop Insurance: Last day to remove grazing livestock from insured hay fields
- Annual Crop Insurance: Last day to apply, make changes to (including updating declared acres) or cancel coverage
See the full list of 2022 deadlines.
Farmer mental health awareness must shift to action
The farmer is the lynch pin of Canada’s largest industry. Mental health must be more than a hashtag if we are serious about saving Canadian farmers from suicide. Read the full story in the Banff 2022 edition of the Canadian Hog Journal.
Read the full edition online or check your mailbox, and keep an eye on the Canadian Hog Journal website, Twitter and Facebook for more articles to be published separately in the coming weeks.
Squeal on Pigs! virtual forum – next month
The Alberta Invasive Species Council (AISC) is hosting a webinar on Wed., May 11, starting at 6 p.m., to provide insight into Alberta’s wild boar management strategies. Register now, free-of-charge. |
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Economics dashboard
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Alberta Pork’s economics dashboard, designed with producers in mind, features regularly updated information on hog markets, grain markets and more. |
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Feed cost modelling
Supplied by Gowans Feed Consulting
View the latest feed price calculator
The information in this section of the Alberta Pork Weekly Report (this email) reflects the feed cost situation experienced at the time the section was last updated, on April 20, 2022.
Grain markets have firmed earlier this week but have come off a little later in the week. The major driver remains news out of Ukraine although seeding progress in the Midwest impacted corn prices earlier this week. Given the importance of grain exports from both Ukraine and Russia, elevated prices are expected to remain as long as the invasion continues and seeding and export routes are destabilized. Here is an overview of feed ingredient pricing delivered Red Deer for Q2:
- Corn has continued to do a good portion of the work in rations, although recent news of seeding delays in the Midwest as well as a drop in the projected corn exports out of the Black Sea region has continued to push the price up over the past few weeks. Prices over the past week have traded at a wide range from $455-480 delivered. Pricing at the end of the week closer to $465-470 delivered although there are a few.
- Wheat prices remain firm with many producers looking for $496/T at the bin, translating to close to $505-510 delivered for CPS Red.
- Barley has not taken the same run up as wheat and corn. This is in part due to harvest pressure from a bumper crop in Australia but also due to lack of bids in the prairies with many users having good coverage on through Q2. Price in central Alberta has been $430-440/T delivered over the past week.
- Corn DDGS has run up following corn futures and a few large US rail lines reducing rail movement. Prices have been $525-530/T. Price reduction is often seen late Q2 or early Q3 when ethanol plants are up and running again full speed to satisfy demand for ethanol during the driving season.
- Feed peas continue to trade in a range of $500-510
- Soybean meal futures are down but so is the CAD. Soybean meal is trading at around $770 delivered while canola meal is closer to $575
- Millrun is starting to drop with millers ramping up for their higher volume season – prices quoted this week are $395-405 delivered
- On the micro ingredient side, amino acids have continued to slowly soften from the highs we saw late December. It is expected that pricing will remain fairly flat the rest of the quarter although a downward trend over the longer term is expected.
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| Disclaimer: Gowans Feed Consulting presents the ingredient prices and feed cost modelling as a snapshot of the market using current information available at the time of the report. These findings are for informational purposes online and should not be reproduced or transmitted by any means without permission. Gowans Feed Consulting does not guarantee and accepts no legal liability arising from or connected to the accuracy, reliability or completeness of any material contained in this publication. |
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Hog supply and price reporting
Supplied by Agriculture and Agri-Food Canada (AAFC)
View the latest hog supply report as a PDF
Information last updated April 16, 2022
Supplied by Commodity Professionals Inc.
View the latest pork market report as a PDF
The market information in this section of the Alberta Pork Weekly Report (this email) reflects the production cycle of the previous six months and pig pricing information at April 12, 2022.
Pricing overview
The latest US livestock and meat trade data reflected total US pork exports at 486.2 million pounds for February, down 24.0 million pounds from January levels and 105.7 million pounds under last year. Notably, year ago levels and those recorded in 2020 for this time as well represented historical highs seasonally as the impact of the pandemic had already spurred an increase in pork purchases from the US (primarily to China). It’s worth noting that current US export levels continue more in-line with recorded pre-pandemic levels. |
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| US pork to Mexico recorded the largest decline on the latest report, falling 37.6 million pounds from the new historical high reached a month earlier. Despite the stronger decline, US pork to Mexico remains among the strongest recorded historically. US pork to South Korea dropped 8.2 million pounds in the latest data, a 6-year low for the month of February. Pork to the Dominican Republic fell 2.3 million pounds however continue at high levels historically, while pork to China* slipped 1.8 million pounds with declines to the mainland partially offset by an increase to Hong Kong. Notably the portion of total US pork exports to China* averaged 8.7% for February, down from the 15.1% for 12-month average, however is more in-line with pre-pandemic rates.
Japan recorded the greatest rise on the latest report, up 19.0 million pounds to rebound to more typical seasonal levels. The 12-month average for Japan’s portion of total US pork exports is 17.4%, compared to 20.3% of total exports for February 2022. Australia increased imports of US pork by 3.8 million pounds in February however continues among the lowest recorded historically. Notably, exports to Australia reached a 13.5-year low in December, slipping under Sep 2008 at 5,076 thousand pounds. |
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| Total US pork imports for February rose 7.9 million pounds or +7.3%, bringing current imports 41.7 million pounds or +55.6% above year ago levels. Imports from Canada increased 7.8 million pounds or +11.9% for February, bringing US imports from Canada 26.4 million pounds or +55.8% over year ago levels. Notably, the US imported 36.0 million pounds more pork from Canada than it exported to the country for the month of February. |
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Weekly hog price recap
Cash hogs were recorded lower overall with heavier declines recorded at the start and end of the of the week. CME cash fell daily however at a more moderate pace compared to cash hogs. Wholesale pork primal values were mixed with lower bellies, butts and loins weighing US pork cutout $1.16/cwt under the previous week’s average. |
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| Canadian market hog values generally fell $1-$5 per hog on the week, excluding the lagged BP/TC which improved near $2.50/hog and hog values out of Quebec which dropped significantly. Hog values out of Ontario declined $5.40/hog, followed by those out of Hylife which fell $4.20/hog and the Sig 4 was down $3/hog. The OlyW 20 fell $1.35/hog and the OlyW 21 slipped $0.80/hog from a week earlier. Quebec dropped $42.70/hog from the week previous, as the implementation of a $40 adjustment weighed heavily on hog values. In the US, Tyson declined $6/hog while JM dropped $9/hog from week ago levels. |
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Weekly hog margins
Monitored hog margins weakened, pressured by a drop in hog values and a significant rise in feed costs. Canadian farrow-to-finish feed costs surged $4.50/hog while those out of the monitored region in the US were up closer to $3.85/hog from a week earlier.
Hog margins out the OlyW 20 continue as the strongest recorded in Canada, however weakened $5.80 to $44.65/hog profits on the week. Margins out of Ontario fell $9.85 to $31.75/hog profits, followed by those out of the ML Sig 4 which weakened $7.40 to $24.85/hog profits and Hylife which dropped $8.70 to $21.15/hog profits. The OlyW 21 fell $5.25 to $19.45/hog profits while hog margins out of Quebec weakened heavily, dropping $47.15 to $8.40/hog losses. In the US, Tyson margins dropped $9.90 to $53.90/hog profits while JM weakened $12.85 to shy of $43.60/hog profits from the previous week. |
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U.S. regional margins
- Tyson: $53.89 USD x 1.2617 = $67.99 CAD
- Morrell: $43.58 USD x 1.2617 = $54.98 CAD
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| Disclaimer: Commodity Professionals Inc. presents the ingredient prices and feed cost modelling as a snapshot of the market using current information available at the time of the report. These findings are for informational purposes online 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 this publication. |
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