Alberta Pork Weekly Report

15

Announcements, news and reminders

From Alberta Pork

Big news weeks for Alberta hog sector

Three mainstream media news items have appeared in the past two weeks directly impacting the Alberta hog sector. Two of those items include direct input from Alberta Pork, and the other is a top story on today’s TV broadcast:

Swine Tech wants you – this month

Have you registered yet for the 22nd Red Deer Swine Technology Workshop? This year, it takes place virtually, free-of-charge, for two afternoons, on Wed., Oct. 20 and Thurs., Oct. 21, 2021, following a one-year hiatus. See the agenda, speakers and sponsors.

Canadian Hog Journal Fall 2021 – this week

The Canadian Hog Journal Fall 2021 edition is expecrted to be available online this week, arriving in mailboxes starting next week!

The latest edition features coverage of wild boar eradication efforts and feed cost management strategies, plus research into creep feeding, canola extrusion and feeding peas, along with articles on public trust, animal versus plant protein and the latest industry news.

Keep up-to-date on all the latest news, events, commentary and more by following the Canadian Hog Journal on Facebook and Twitter.

COVID-19 management

From Alberta Pork

COVID-19 creates challenges for in-person meetings

As we continue to face a new wave of the COVID-19 pandemic, Alberta Pork eagerly awaits a time when our staff and board can meet face-to-face with producers and stakeholders again.

Currently, the Government of Alberta’s Restrictions Exemption Program (REP) stipulates that individuals gathering in collective spaces must have proof of double vaccination, a negative COVID-19 test administered no longer than 72 hours prior or a medical exemption letter.

Recognizing that not all producers and industry stakeholders are vaccinated, and acknowledging the cost associated with private testing, this can complicate in-person meetings. The sooner we are all able to meet the requirements under the REP, the sooner we can all be together again!

Until then, Alberta Pork will only be able to hold in-person meetings where Government of Alberta gathering restrictions can be verified. We will also continue to do as much as possible through virtual meetings, and we are always available by phone or email to help with issues.

Alberta Pork will also provide relevant information related to COVID-19, for the benefit of all producers and industry stakeholders.

Restrictions Exemption Program grant program

In response to the latest public health actions, government is providing funding to help offset costs of implementing the Restrictions Exemption Program (REP) and support training for workers.

A one-time payment of $2,000 will soon be available for Alberta small- and medium-sized businesses that are eligible for and choose to implement the REP. An additional $1 million will also be available for training to support the safety of workers when implementing the REP.

Eligible industry associations across Alberta can use the REP Training Grant to develop or procure training to help workers assess and manage challenging situations that may arise during their daily work.

Alberta Pork will keep producers updated as more information is released. Learn more.

Feed cost modelling

Supplied by Gowans Feed Consulting

View the latest feed price calculator

Information last updated September 14, 2021
Grain prices have begun to soften a little across the prairies with the progression of harvest and the pressure of a significant number of corn unit trains heading to Southern and Central Alberta by November. Here is an overview of commodity price movements.

  • Barley has dropped close to $20/T due to line companies buying back supply previously destined for export and moving it into the local market. Prices delivered Red Deer are approx. $375-380 delivered.
  • Wheat has come off as well with delivered prices over the past week in the range of $400-405.
  • Corn is still firm for the nearby but we are seeing prices for new crop corn available by November in the range of $370-380 delivered Red Deer area.
  • Pulses remain very high and don’t seem to price into swine rations at the moment with prices for feed peas and fabas from $475 into the $500’s per metric tonne.
  • For proteins, canola meal has been firming given tight crush margins while soybean meal has been fairly flat at around $570-580/T delivered and US corn DDGS at $386-395/T delivered.
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.

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 October 2, 2021

Supplied by Commodity Professionals Inc.
View the latest pork market report as a PDF

Information last updated September 28, 2021

Pricing overview

In the latest report US Cold Storage reported pork stocks at 460.1 million pounds for August, which is down 4.9 million pounds or -1.0% under last year. The latest stocks reported were up +4.0% or 17.7 million pounds from July, largely due to the seasonal climb of hams in storage. For reference, total pork in cold storage for July was revised lower from 443.1 to 442.4 million pounds.

Total hams in cold storage rose 33.1 million pounds or +21.7% from last reported, with bone-ins up twice as much as the boneless variety. Hams in cold storage typically climb from March through September, and compared to year ago levels are +29.0% or up 41.8 million pounds. Other categories reported more modest increases from the levels recorded in July, such as butts which were up 1.9 million pounds or +16.5% higher and trimmings which climbed +3.8% or 1.4 million pounds higher. Bone-in picnics were up +17.0% or 785 thousand pounds higher, while total loins climbed +1.5% or 467 thousand pounds.
Offsetting a good portion of the overall increases were significant declines in bellies and spare-ribs as well as other, variety and unclassified pork categories. Bellies in cold storage dropped 10.3 million pounds or -37.0% from July levels, bringing current stocks 13.6 million pounds or -43.7% under year ago levels. Spare-ribs declined 4.7 million pounds or -7.7% for August, with ribs -9.8% or 6.1 million pounds under last year. Other Pork declined 3.3 million pounds or -6.3% from July, down -7.8% or 4.2 million pounds from last year.

Weekly hog price recap

Regional and national cash hogs fell throughout the week with heavier declines recorded mid-week and Friday down the least. CME cash also fell daily, however more moderately in comparison. Wholesale pork primals were mixed with bellies, ribs and hams helping pork cutout rise $0.85/cwt over the previous week’s average.

Canadian market hog values generally declined $5-$6 per hog, with those including lagged base pricing down more than other markets. Only Hylife improved, up $0.75/hog from a week earlier. The OlyW 20 fell $8/hog while the OlyW 21 and hog values out Ontario fell $6/hog, closely followed by the BP/TC which declined $5.75/hog. The ML Sig 4 was down $4.75/hog and hog values out of Quebec fell $4.25/hog. In the US, hog values out of Tyson fell $10.50/hog while JM dropped $14.25/hog from week ago levels.

Weekly hog margins

HHog margins continue to weaken overall on significant declines in market values. Feeds costs influenced margins more moderately on the week, with Canadian farrow-to-finish feed costs up $0.25/hog while those in the monitored US region were down $0.25/hog.
Hog margins out of the OlyW 20 weakened more than $8.25 to $55.50/hog profits. Margins out of Quebec were down $4.50 to more than $48.25/hog profits and Ontario weakened $6.25 to more than $44/hog profits. Hylife margins improved on the week, strengthening $0.50 to $43/hog profits. OlyW 21 margins declined $6.25/hog to more than $42/hog profits, while ML Sig 4 margins weakened $5 to more than $40/hog profits. In the US, hog margins out of Tyson weakened $9.75 to $36.75/hog profits while JM margins were $14 lower to $22/hog profits.

U.S. regional margins

  • Tyson: $36.70 USD x 1.268 = $46.54 CAD
  • Morrell: $22.08 USD x 1.268 = $28.00 CAD
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.