Alberta Pork Weekly Market Report

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Alberta Pork Weekly Report

November 2, 2021

Announcements, news and reminders

 

From Alberta Pork

AGM 2021 – register now

Alberta Pork’s 2021 annual general meeting (AGM) takes place virtually on Thurs., Nov. 25. Register now. Our AGM provides you with an opportunity to have your say in the direction of Alberta Pork and learn about what we have been working on in the past year.

Lowering pork’s carbon footprint by feeding peas

With feed production representing a significant portion of the livestock industry’s carbon footprint, using pulses in hog rations provides an opportunity to lower the environmental impact. Read the full article in the Fall 2021 edition of the Canadian Hog Journal.

Alberta Jobs Now program second intake

A second intake for the Alberta Jobs Now program opened on Wed., Nov. 10. The program provides funding for businesses, including farm businesses, to hire and train Albertan workers. Apply now.

Environmental Farm Plan info for producers

The Alberta Environmental Farm Plan (EFP) is a whole-farm self-assessment tool that helps farmers address environmental risks. Having an EFP is a requirement for funding under some of the programs supported by the Canadian Agricultural Partnership (CAP). Watch this video to learn more.

On Tues., Nov. 16, a webinar will be held to inform producers about the EFP and the importance of having one. On Wed., Nov. 24, a second webinar will walk through the development process. Register for the first webinar. Register for the second webinar.

COVID-19 management

 

From Alberta Pork

QR code now required for vaccine status

As part of the Government of Alberta’s Restrictions Exemption Program (REP), as of Mon., Nov. 15, all individuals offering proof of COVID-19 vaccination must present a QR code connected to the province’s digital vaccine records. The QR code may be presented using a smartphone or printed on a piece of paper. The previously acceptable hard copy record of vaccine status is no longer valid. Get your QR code now.

Unvaccinated individuals may still participate in the program by presenting 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, 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.

Are you looking to get vaccinated? Book your appointment today!

Don’t wait until it’s too late

Albertan Sabear El-Rafih, 30-years-old, was unvaccinated and hesitant to get the COVID-19 vaccine when he tested positive for the virus and ended up in the intensive care unit. While still in hospital recovering, he got the vaccine and is now sharing his story to encourage all Albertans to get vaccinated against COVID-19.

Check out this video from the Government of Alberta:



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 October 14, 2021.

The Central Alberta feed market remains volatile with the general story being tight supply in the nearby and a big spread between corn and the small grains as unit trains begin to arrive mid to late November.

  • Wheat market has tightened over the past week with prices pushing $420 delivered
  • Barley prices have been on an upward trajectory as well at around $405 into central Alberta
  • Corn is trading in a range for the nearby between $395 and $410 for October although new crop prices have improved of late with a drop in futures and strengthening of the Canadian dollar. New crop prices for early to mid November around $390-395 with late November; onwards closer to $360.
  • Peas remain high over $500 while fabas are closer to $455-465 delivered
  • Ethanol margins remain strong keeping DDGS price in check although logistics have been a challenge of late heading into Alberta.  We are seeing DDGS trading at $390-395 into Red Deer area.
  • Soybean meal has dropped given the recent strengthening of the Canadian dollar with delivered price around $525. Despite softening prices, nearby delivery has been a challenge due to rail logistics.
  • Canola meal trading at around $390

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 November 6, 2021

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 November 2, 2021.

Pricing overview

The latest USDA data tallying US livestock and meat trade was released Friday, November 5th. Total US pork exports fell 15.8 million pounds or -3.0% from last reported, and was down 35.1 million pounds or -6.4% from year ago levels. Notably, total US pork imports for September reached a new high historically at 109.7 million pounds, marginally higher than the high reached the month previous at 109.3 million pounds.

US pork to Japan declined the most in the month of September, dropping 13.6 million pounds. Pork to mainland China fell 5.6 million pounds while Hong Kong slipped 792 thousand pounds and Taiwan edged 174 thousand pounds lower for an adjusted China* decline of 6.6 million pounds. Pork to China* accounted for 10.6% of the total monthly US pork export volume for September, compared to 11.5% in August and 21.9% on the 12-month average. The Philippines, Colombia, Dominican Republic and South Korea recorded more moderate declines, with each country generally 2-3 million pounds lower. Notably, the Philippines slipped to low levels for this time seasonally compared to more recent historical years, while US pork being exported to the Colombia and the Dominican Republic are considered strong historically.

Offsetting some of these declines were increases to Canada primarily, which rose 13.5 million pounds, however Mexico recorded a moderate 1.2 million pound increase on the month. US pork to Canada accounted for 11.1% of the total monthly US volume for September, which is 3% above the 12-month average. Notably, the US imported 13.2 million pounds more pork from Canada than it exported to the country for the month of September.

As the recent data illustrates, US pork exports abroad are down roughly 1% year to date compared to the same months in 2020.  However, US pork imports are significantly higher which confirms strong domestic demand and the need for more product to satisfy domestic needs.  Lower exports to other major buying nations around the world should not be viewed as a major negative to market pricing.  Rather the difference between imports and exports confirms the requirement of more pork needed both around the world and domestically in the US.

Weekly hog price recap

Cash hogs faced another week of significant declines. National cash was down near daily while regional cash fell for the better part of the week with improvement days up only modestly. CME cash fell daily, down $0.75-$1/cwt throughout the majority of the week. Wholesale pork values were mixed, however heavier declines in bellies and butts weighed on pork cutout. US pork cutout slipped $1.75/cwt under the previous week’s average.

Market hog values fell as much as $12/hog this week, weighed on heavily by declines in cash hogs pricing and wholesale pork values. Quebec was yet again down the most compared to other monitored markets, down $12/hog, followed by lagged pricing markets such as the OlyW 20 & 21 and the BP/TC which were each down $11-$11.50/hog from the week previous. Hog values out of Ontario fell nearly $10/hog, while the ML Sig 4 and Hylife markets each declined $8.50/hog. In the US, hog values out of Tyson fell more than $5.25/hog while JM was down $7.50/hog from week ago levels.

Weekly hog margins

Monitored Canadian hog margins generally weakened more than $12/hog in the last week, due to lower hog and pork values primarily however were also further pressured by another rise in feed costs. Canadian farrow-to-finish feed costs climbed $2/hog while those in the monitored US region were up $1.50/hog from a week earlier.
Hog margins out of the OlyW 20 weakened $13.25 to more than $23.75/hog profits, while the OlyW 21 was down near $13.75 to $19.50/hog profits and Quebec margins fell $14 to $19.25/hog profits. Hylife weakened shy of $10.75 to more than $13/hog profits, while Sig 4 margins declined $10.65 to $9.75/hog profits and Ontario was down $12 to more than $8.50/hog profits. In the US, hog margins out of Tyson weakened more than $6.75 to $0.35/hog profits while JM margins weakened $9 to $12.75/hog losses.

U.S. regional margins

  • Tyson: $0.37 USD x 1.2404 = $0.46 CAD
  • Morrell: $(12.80) USD x 1.2404 = $(15.88) 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.

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