Steve Dzier Alberta Pork Pricing & Marketing Report: Week of July 9-13, 2012
Prepared by Phoenix AgriTec Inc.
Cash hog prices fell the previous week mainly due to the fact that the Canadian dollar strengthened which pushed the exchange rate lower and in turn softened the advantage that domestic producers were benefiting from over the past month. US base prices were narrowly mixed compared to last week with the ISM down $0.34/cwt, while the WCB gained $0.36/cwt. Packer needs were mixed due to holidays on both side of the border which resulted in the seesaw action.
The foreign exchange rate was reported lower due to moderate strength seen in the Loonie which pushed to it to its highest level in over 6 weeks. Strength in equity markets along with a rebound in oil prices were seen as bullish factors. For the week ending Jul 6, the 5-day average Bank of Canada noon rate shed 0.0125 basis points to 1.0145 CAN/US.
|Olywest 10/11 Plus C$/ckg||C$ Per
|ML Sig 3
|C$ Per Hog||ML Sig#4
Year to Date 2012
Last 30 days
Last Week July 2-6
For the week of Jul 2-6, Olymel reported cash hogs $2.15 CAN per hog lower compared to the previous week, while Maple Leaf’s Sig3 slid $3.39. The Sig4 dropped $4.96 CAN per hog, with the VMR slipping $3.36 US per hog.
Average barrow and gilt weights were reported at 270.0 lbs, down 1.4 from last week and +2.4 from last year. Pork cutout values fell sharply with composite prices down $6.38 at $91.55. Loins and ribs were the main contributors to the overall weakness, tumbling $17.76 and $21.53 respectively. The extreme heat that has hit much of North America has put a dent in consumer demand for summer grilling pork cuts, and decreasing finished weights as feed conversion slips.