Things to Consider….

Retail bacon prices rose 19 cents or +2.8% to $6.86/lb, bringing retail values +18.7% or $1.08 over year ago levels. Current retail bacon price levels are $1.23 over the 3 year average for the month of July, and has reached a new historical high surpassing the previous high reached in June 2021 at $6.67/lb.

In comparison, wholesale belly prices rose +15.9% or $28.09 to $205.07/cwt for July and is the second highest historically behind only the record high of $209.41 reach in July 2017. Compared to year ago levels, bellies are up +110.7% or $107.75 higher. 

All retail chops were generally stable, slipping 1 cent or -0.2% lower to $4.08/lb from July however was 17 cents or +4.4% over last year. Current retail price levels are 55 cents over the 3 year average for the month of July.  Boneless chops fell 9 cents lower or -1.9% to $4.46/lb, bringing boneless chops +2.3% or $0.10 over last year. Bone-in chops edged 3 cents lower or -0.7% to $4.32/lb, bringing the cut also -0.7% or 3 cents under year ago levels. 

Wholesale loins were down $8.19 to $109.54/cwt or -7.0% lower than the previous month, and +63.1% or $42.38/cwt over last year. 

All retail hams fell 6 cents or -1.6% to $3.71/lb from June, with no year-over-year comparison. Current retail price levels are 51 cents over the 3 year average for the month of July. Boneless ham values declined 26 cents or -5.2% to $4.67/lb for July, bringing them 9 cents or +2.0% over last year. 

Wholesale ham prices averaged $102.15/cwt which was up $15.04/cwt or +17.3% from June and $43.13/cwt or +73.1% over year ago levels. For comparison wholesale picnics averaged $84.67/cwt, up $4.79 or +6.0% for July and brought picnics $40.10/cwt or +90.0% over last year.  

The category reporting other retail pork prices rose 18 cents or +5.4% to $3.56/lb, reaching a new historical high for the 4th consecutive month with current levels 46 cents over the 3-year average for the month of July.

  August 10, 2021

Weekly Hog Price Recap

Regional and national cash hogs fell daily with heavier declines recorded early to mid-week. CME cash also declined overall, however recorded some modest recovery mid-week to help end the week nearly unchanged. Wholesale pork values generally improved, excluding hams, which helped support pork cutout $1.40/cwt over the previous week's average.  

Canadian market hog values were mixed, with many markets recording moderate improvement. Hylife rose $1.60/hog, followed by those out of Quebec which were $1.15/hog higher and the ML Sig 4 which climbed $0.70/hog from a week earlier. Hog values out of Ontario edged $0.35/hog lower, while the OlyW 20 dropped $3.25/hog and the OlyW 21 was up $0.10/hog. BP/TC fell $3.50/hog from a week prior. In the US, hog values out of Tyson dropped more than $9.25/hog and JM was down $6.25/hog from the previous week.  

Weekly Hog Margins

Canadian hog margins were mixed to generally lower, with mostly modest improvement in market hog values outweighed by an increase in feed costs. Canadian farrow-to-finish feed costs climbed $1/hog while those in the monitored US region increased a little more, up $1.15/hog from a week earlier.

Hog margins out of the OlyW 20 weakened $4.25 to $98.75/hog profits, while those out of Quebec were up $0.20 to $91.45/hog profits and Ontario weakened $1.30 to $90/hog profits. Hylife margins improved $0.65 to $80.75/hog profits, while the OlyW 21 declined $0.85 to $78/hog profits and the ML Sig 4 edged $0.25 lower at $76.35/hog profits. In the US, hog margins out of Tyson weakened $10 to $80.75/hog profits while JM margins fell $7.45 to $75.50/hog profits.

US Regional Margins

  • Tyson: $ 80.74 USD X 1.2534 = $ 101.20 in Canadian Dollars
  • Morrell: $ 75.52 USD X 1.2534 = $ 94.66 in Canadian Dollars

Disclaimer: Commodity Professionals Inc. presents this report as a snapshot of the market using current information available at the time of the report. These findings are for informational purposes only 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 the publication.