October 4, 2006

Canadian hog prices likely to fall slightly

Seasonally low prices for Canadian hogs can be expected in the coming weeks, although the fall would not be as bad as in past years, Patrick O'Neil, the Sales Team Manager at Ontario Pork said.

October and November months tend to be a low for hog prices, O'Neil said. However, because of greater slaughter capacity in the US, there would unlikely be any major lows.

O'Neil said that is also the reason why the a recent US inventory report noting an expanding pig herd caused barely a ripple in the market.

In Canada, the reverse is happening-- the size of the pig herd is shrinking as the strong Canadian dollar meant more pigs being sent finishing in the US, he said.