ThePigSite.com - news, features, articles and disease information for the swine industry

Sign up for ThePigSite weekly newsletter5m Books.comVIV Europe 2014 DigitalIntroducing ElSitioPorcino.com

News

US Hog Margins

24 February 2012
Genesus - The first power in genetics

US - Margins continued to improve since the end of January, particularly in the second half of 2012 with historically strong profitability being projected for Q3 and Q4 which are now around the 98th percentile of the past 5 years, writes Doug Lenhart, General Manager for Genesus in USA.

The improvement stems mainly from an increase in deferred hog prices, with feed costs contained by an offsetting rise in meal and drop in corn over the past two weeks.

December export data continue to show strong demand for pork, with the US Meat Export Federation reporting 2011 pork exports totaled 2.255 MMT valued at $6.11 billion, breaking the previous volume record of 2.052 MMT and shattering the value record of $4.88 billion – both established in 2008. Year-over-year, pork exports were up 18 per cent in volume and 28 per cent in value, and equated to 27.5 per cent of total production when including both muscle cuts and variety meat. While this may be a tough act to follow in 2012, there is general optimism with improving economic indicators that demand will remain strong and pork competitively priced.

February’s WASDE report tightened the corn balance sheet with exports rising 50 million bushels due to a 4 MMT drop in Argentina’s corn crop. The soybean balance sheet was left unchanged, but it is clear that the US needs to harvest a large corn crop this season.

1st Qtr ’12 Most Recent Offering of $6.22, the low was ($4.22), the high has recently been $13.87 and the 5 year percentile of 94.2 per cent.

2nd Qtr ’12 Most Recent Offering of $13.96, the low was $2.42, the high has recently been $19.39 and the 5 year percentile of 93.2 per cent.

3rd Qtr ’12 Most Recent Offering of $13.16, the low was $1.20, the high has been $14.07 and the 5 year percentile of 98.8 per cent.

4th Qtr ’12 Most Recent Offering of $6.78, the low was ($0.14), the high has been $6.94 and the 5 year percentile of 97.5 per cent.

Genesus Global Market Report
Prices for week of 13 February 2012
Country Domestic price
(own currency)
US$
(per pound liveweight)
USA (Iowa-Minnesota) 85.12¢
US$/lb carcass
62.98¢
Canada (Ontario) 1.57
C$/kg carcass
57.31¢
Mexico (DF) 24.68
MXP/kg liveweight
83.93¢
Brazil (south region) 2.44
BRR/kg liveweight
64.51¢
Russia 95
RUB/kg liveweight
$1.42
China 16.32
RMB/kg liveweight
$1.17
Spain 1.24
€/kg liveweight
74.68¢


To find out more about Genesus Genetics, please take the time to visit their website at www.genesus.com .



Share This

News By

Related News

Canada: Hog Markets

News from Canada  11 April 2014

More News

Our Sponsors

Partners