Pork Prices Looking Up

Recent strong export demand for U.S. pork is helping to push hog prices higher on this side of the border.

Brad Marceniuk, a provincial livestock economist with the Saskatchewan government, said Canadian prices for slaughter weight hogs have rebounded about 30% from their lows in November and December – mainly due to excess North American pork supplies being reduced by relatively heavier American export sales over the previous few months.

U.S. pork exports posted a strong finish in 2015 as December volume was the largest since April and the third-largest of the year, according to data released by USDA and compiled by the U.S. Meat Export Federation. However, for the full calendar year, U.S. pork exports were down 2% from a year ago in volume (2.13 million tonnes) and 16% lower in value (US$5.58 billion).

While Marceniuk acknowledged the value of U.S. exports have been limited by currency issues, he added that volumes have definitely moved higher more recently.

U.S. hogs slaughtered under federal inspection for the week ending Feb. 20 were estimated 2.294 million head, up 0.6% from the previous week, and almost 1% above the same week a year ago.
“This helped clean up some of the supplies that were on hand,” Marceniuk said.

Source: Syngenta