May 28, 2008

MPMC expects stronger live hog prices for 2008
  
  

The Manitoba Pork Marketing Co-op (MPMC) is expecting stronger and more stable live hog prices towards the end of 2008.

Live hog prices have increased by about US$60 per 100 kg in the past five weeks. MPMC general manager and CEO Perry Mohr has attributed it to normal seasonal price increase along with a huge increase in domestic demand and high US export numbers.

Mohr said they are currently experiencing a lull in demand, which is normal.

Mohr said live hog prices normally peak in the summer but would drop in autumn and winter. However, Mohr remains optimistic that the prices will drop only a little before stabilising for the rest of 2008.

The market price has fallen by about US$5 per 100 kg and it could drop by another US$5 but prices would soon bounce back and the market will respond well again, according to Mohr.

Mohr said the key factors would be the demand in domestic and export markets.

There are currently record pork supplies in the US and the numbers must decline through summer if the prices are to be supported, Mohr said, as he also pointed out that the appreciating Canadian dollar is pressurising pork prices and it is a factor to look out for.

Mohr also said both Canada and the US are liquidating herds but slaughter numbers in the US could drop to or under 2.1 million head on a weekly basis, a number that must be maintained for market recovery.