March 8, 2006

Canada expects stronger hog prices in spring

Canada would likely see stronger live hog prices as spring approaches, but until then prices will remain volatile, according to Saskatchewan Agriculture and Food Livestock Economist Brad Marceniuk.

He also observed that while live hog prices have continued to fluctuate, they have improved since the beginning of February when excess supplies of pork and chicken pushed prices down.

With chicken in cold storage up 46 percent on-year and pork up 23 percent from December, increased meat supplies have been depressing prices for the past few months.

The key factors that will continue to influence where hog prices go this spring are US hog slaughter numbers, the demand for pork, US meat in cold storage and the Canadian dollar.

Lower hog slaughter numbers in the US over the last few weeks have aided US hog prices, however the strengthening Canadian dollar will put downward pressure on hog prices for producers in Canada.

Marceniuk notes that figures show the total inventory of hogs in Canada fell only slightly from one year earlier. He said Canadian production has remained relatively flat in 2005 and is not expected to grow much in 2006.