Canada Hog Markets – 2016 Review

CANADA - As we review 2016 from the table compiled by the OMAFRA Swine Team, we see perhaps a more normal year, if such a thing exists anymore in this industry, writes Bob Fraser – Sales & Service, Genesus Ontario.
calendar icon 15 December 2016
clock icon 3 minute read

Although profits started the year in the red, with January showing a ($12.86) loss, prices quickly moved to profitability, reaching $33.96 profit by June and an $11.63 average for the first half of the year.

However, in the second half of the year, things quickly fell out of bed after July, dropping to $1.06 profit in August before turning progressively red with November showing a ($40.01) loss. This brings the average loss for the five months of the second half of the year to ($10.03).

On the year it appears 2016 is going to come out as a draw on profitability. There is increasing evidence that the market has hit bottom, with market hogs beginning to turn up. Also, prices of SEWs and feeder pigs (the harbingers of better days) are increasing appreciatively on the increased demand fuelled by encouraging summer futures and the seasonally contracting of supply.

Corn and soybean prices have resulted in relatively stable prices throughout the year and appears to continue into 2017 (at least right now). Corn yields in the hog producing regions of Ontario seem to mostly be good to exceptional. However, there are major concerns on mycotoxins, with reports of instances of extremely high levels.

Suggestions are that it appears to be more variety based than region based. In any event, it is likely to have consequences for the industry in the coming months, particularly reproductively.

Below Compiled by the OMAFRA Swine Team ([email protected]), their 2017 Ontario Monthly Hog Market Facts – Net Return for a Farrow to Finish.

Finally, in this season of Advent with its waiting and expectation, as we look back and forward we would do well to count our blessings. We live in a great and fortunate part of the world. One needs look no further than the tragedy of Aleppo to realize this in spades. So with that, may you and your family have a most joyous and blessed Christmas, and a happy and prosperous New Year!

© 2000 - 2022 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.