Weekly Regional HOG PRICE Report

Things to Consider….

*Highest recorded December pork cutout in over 25 years*

Rarely is history made in December when it comes to the hog and pork industry, but this past week has provided the industry with something to be truly excited about.

Recent strength in many pork primal cuts have resulted in the new record overall, continuing the pace which started earlier in the year. 

This past Friday's pork cutout was reported at $94.61/cwt, a gain of $3.45 from the Friday previous and brings cutout $10.28/cwt over last year, a new high for the month of December long term.

Wholesale hams are a major contributor to the strength trading above $100 at $102.96/cwt, a value not seen since mid August and a value never registered before in history for hams in the month of December.

Pork cutouts’ relationship to CME cash has also maintained a normal spread which indicates packers continue to operate within historical margin parameters passing on much of the meat strength to the industry through cash markets.

December 17, 2024

Weekly Hog Price Recap

US cash hog prices were notably lower in regional markets recording losses between $4-6 US per cwt while the CME Index was able to maintain much of its value from the prior weekly average posting a small decline. 

The national pm 5-day average closed -$4.30 US per cwt lower, down 5.1%. CME cash was slightly lower dropping -$0.13 per cwt on the weekly average. Wholesale pork primals registered a solid gain, climbing $2.98 US/cwt, or 3.3% above the week earlier. Friday over Friday pork cutout values were also higher by $3.45 per cwt indicating continued strength in pork demand.

Canadian hog prices were mixed this week with markets tied to regional US prices slipping while packers connected to cutout/meat values were steady to firm. The Canadian dollar continued to trade negative this week lifting the exchange rate again adding value to ALL regions. The Canadian dollar has now traded below 70 cents US for the first time in nearly 5 years dating back to March of 2020. ML Sig 4 registered a slight gain of $1.18/hog from the week prior, Hylife prices were also higher by $2.66 and Olymel prices were both lower by -$1.40 (OlyW21) and -$2.22 (OlyW20). In the US, Tyson hogs were higher gaining $5.32/hog while JM hogs were sharply lower by -$12.13 US/hog due to its relation to regional pricing.

Weekly Hog Margins

Monitored Canadian hog margins were mostly higher with exception of markets in Alberta because of the slightly lower cash and a slight softening of feed prices. Western regions recorded a change ranging from -$1.22 to +$3.62 per hog while Eastern markets were higher from +$1.97 to +$6.28 per hog. Canadian farrow-to-finish feed costs were slightly lower on weakness in grain markets.

Ontario hog margins were slightly positive gaining $1.97 at $33.10/hog, ML Sig 4 (MB) margins were firm up $2.14 to $32.26/hog profits. HyLife margins were higher by $3.62 to $31.44/hog profits and OlyW 20 hog margins were lower by -$1.26, while Quebec hog margins turned higher with the cutout gains, up $6.28 to $21.38 per hog. OlyW 21 lost -$0.44 to $15.87/hog profits. In the US, Tyson hog margins were slightly positive over the week gaining $1.92 while JM margins were sharply lower by -$11.03 at $30.50 US/hog profits.

US Regional Margins

• Tyson:  $ 46.53 USD X 1.4174 = $ 65.95 CAD
• Morrell: $ 30.50 USD X 1.4174 = $ 43.23 CAD

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.