Steve Dzier:Alberta Pork Pricing & Marketing Report: Week of June 25-29, 2012
Prepared by Phoenix AgriTec Inc.
Canadian cash hog prices rose sharply, adding onto last week’s rally in the cash market. Tightening supplies reflected in higher base prices contributed towards the successful week seen in the hog complex. Strong demand can be seen in the cutout market, especially loins and bellies rose to levels not seen since August 2011.
Slaughter rates were down last week which might be due to the fact that Independence Day buying has wrapped up with many of the cuts on route to the wholesalers. Packer interest south of the border should be lighter the latter half of the week seeing that there will be less demand for slaughter ready hogs due to the holiday on Wednesday.
|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 June 18-22
The CAN/US exchange rate weakened due to uncertain outcomes in Europe which sparked some liquidation of risky currencies such as the Loonie, and moved investors to the US dollar index. For the week ending Jun 22 the 5-day average Bank of Canada noon rate was 1.0230 CAN/US, down 0.0033 basis points.
Compared to the previous week, Olymel shot $15.37 CAN per hog higher while the Sig3 price gained similarly, up $15.08 CAN per hog. The Sig4 took into account the previous week’s upticks climbing $10.51 CAN per hog, while Tyson’s VMR jumped $13.68 US per hog.
Wholesale pork cutout on average gained $7.49/cwt US on general strength seen among all cuts. Bellies led the charge, up $12.87, followed by loins up $7.66. This is typical during the summer months as consumers demand more grilling friendly cuts, as well as breakfast favorites such as bacon. Average barrow and gilt weights were reported at 272.1 lbs, down 2.3 from the week previous and +3.8 from last year. This was also considered bullish towards the market and added pressure on productions levels. Above normal temperatures early summer may have played a role in the reduction of weights.