Weekly Regional HOG PRICE Report

Things to Consider….

The latest US federally inspected hog slaughter for the week prior to the shortened Christmas week was reported at 2,581 thousand head: up 21.0 thousand head or 0.8% from the previous week.  

However, compared to last year, the most recent kill levels were -5.0% and remain only +0.7% over last year-to-date with 1 week left in the calendar year.  A significant trend change has been noticed since mid May when year over year weekly kills started declining.  The 2024 % of 2023 graph clearly illustrate the timing of the “shift” in slaughter numbers south of the border.

With sow slaughter numbers not dropping like market hog volumes, the “expansion” phase of the industry is not considered confirmed at this time.

Hog producers on both sides of the border are set up for what appears to be a very profitable year based on current available supplies and reasonable feeding and production costs.

Merry Christmas and All the Best in 2025

December 24, 2024

Weekly Hog Price Recap

US cash hog prices were lower in regional markets recording losses between $2-3 US per cwt while the CME Index was able to maintain much of its value from the prior weekly average posting a small gain. The national pm 5-day average closed -$2.17 US per cwt lower, down 2.7%. CME cash was fractionally higher gaining $0.13 per cwt on the weekly average.

Wholesale pork primals registered a solid gain, climbing $2.65 US/cwt, or 2.8% above the week earlier. Friday over Friday pork cutout values were also higher by $2.67 per cwt indicating continued strength in pork demand.

Canadian hog prices were mixed again this week as declines in the Loonie overpowered declines in regional US prices for some markets while those connected to cutout/meat values were significantly stronger as pork values climbed.  The Canadian dollar continued to trade negative this week having significant influence on ALL regions across Canada.  The Canadian dollar closed below 70 cents US for the first time in nearly 5 years dating back to early 2020. ML Sig 4 registered a gain of $5.00/hog from the week prior, Hylife prices were also higher by $10.45 and Olymel prices were mixed +$4.01 (OlyW21) and -$0.44 (OlyW20). In the US, Tyson hogs were higher gaining $5.09/hog while JM hogs were lower by -$5.01 US/hog due to its relation to regional pricing.

Weekly Hog Margins

Monitored Canadian hog margins were all higher this week as the declining Canadian dollar helped hog prices while feed costs were held at bay with weak grain prices.   Western regions recorded a change ranging from $2.07 to +$8.07 per hog while Eastern markets were higher from +$4.32 to +$9.52 per hog. Canadian farrow-to-finish feed costs were slightly lower on weakness in grain markets.

Ontario hog margins were positive from the week prior gaining $4.32 at $37.42/hog, ML Sig 4 (MB) margins were firm up $4.11 to $36.37/hog profits. HyLife margins were higher by $8.07 to $39.51/hog profits and OlyW 20 hog margins were up by $12.07, while Quebec hog margins turned higher with the cutout gains, up $9.52 to $30.91 per hog.  OlyW 21 gained $5.70 to $21.57/hog profits. In the US, Tyson hog margins were positive over the week gaining $5.19 while JM margins were lower by -$4.09 at $26.41 US/hog profits.

US Regional Margins

• Tyson:   $ 51.72 USD X 1.4324 = $ 74.08  CAD
• Morrell: $ 26.41 USD X 1.4324 = $ 37.83  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.