Steve Dzier Alberta Pork Pricing & Marketing Report: Week of July 30-3, 2012

Prepared by Phoenix AgriTec Inc.
Cash hog values regained strength the week ending July 27th on generally stronger US base prices along with a higher exchange rate which aided domestic cash prices offered by packers.  Climbing cutout values were the source of renewed strength in what has been an unclear summer for cash prices.  Record breaking grain prices have forced some producers to liquidate herds which are expected to add to short-term supplies, while at the same time lowering average weights as producers send hogs at lighter weights attempting to minimize losses.

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The foreign exchange rate benefited Canadian producers this past week as the 5-day average Bank of Canada noon rate rose 0.0024 basis points to 1.0144 CAN/US.  Lower crude and a higher US dollar due to uncertain European economic developments were the main contributors.

For the week July 23-27, Olymel was up $3.79 CAN per hog while the Sig3 reported on average $4.41 CAN per hog higher.  The Sig4 slipped $0.81 CAN per hog, while the VMR climbed $0.52 US per hog.

Wholesale pork prices advanced $1.94/cwt to 92.27 on average for the week.  Bellies rose significantly which is reflected by strong demand for bacon during the summer months.  Average ISM barrow and gilt weights came in 1.4 lower than the previous week at 267.1, but +3.4 compared to last year.