CANADA - A Provincial Livestock Economist with the Saskatchewan Ministry of Agriculture reports hog markets are beginning to experience the typically rally fuelled by a stronger demand for pork as the result of barbecue season, writes Bruce Cochrane.
The Saskatchewan Ministry of Agriculture's Weekly Hog Market Report, released Tuesday, indicates hog prices have moved higher over the past week.
Brad Marceniuk, a Provincial Livestock Economist with the Saskatchewan Ministry of Agriculture, says seasonally, moving into spring and summer, we see declines in hog slaughter numbers while demand picks up with barbecue season and helps move prices higher into the summer when they typically reach seasonal highs.
Brad Marceniuk-Saskatchewan Ministry of Agriculture:
Live hog prices have been moving in the last few weeks in western Canada and are currently in the low 160s and this really has been caused by lower hog numbers and stronger pork demand and stronger pork demand has resulted in stronger pork cutout values which has translated into higher cash prices.
The balance between pork supplies and demand continues to be good.
Looking at competing meats, both beef and chicken production in 2016 have moved higher which has pressured their prices lower.
Pork supplies however are down slightly which has helped pork prices.
Pork continues to be priced attractive relative to beef and so pork prices should be able to move higher into the summer as per normal cycles.
Lean hog future prices have edged higher in recent weeks indicating pork prices could be on the rise or should be on the rise for the summer.
Cash pork cutout values have also moved higher in recent weeks indicating good demand and stronger hog prices so demand for pork continues to be good both domestically and for the export market.
Marceniuk says, when the dollar was declining, it was positive for Canadian hog prices.
He says the recent rise in the Canadian dollar does not appear to have affected prices to much yet and that's likely due to increased overall demand for pork this spring as the pork cutout value has been on the rise due to barbecue season.
ThePigSite News Desk
Top image via Shutterstock