Ontario hog prices continue to rise, reaching $225.99/cwt which is an increase of almost 7% from mid-January. This price is up from $182.54/cwt from last year
Pork producers around the globe are very cautious to expand due to uncertainty surrounding tariffs and lingering domestic and foreign animal diseases. Producers are focusing on cost efficiencies and changing customer eating habits. Feed grain prices are softening compared to 2024 levels and will lower production costs.
Disease remains a major risk to exporting countries. The recent foot-and-mouth disease outbreak in Germany decimated their hog market for that country even though the disease had nothing to do with pigs.
Slaughter levels in Canada are down nationally on average 2.5%, with the east being down three times more than the west. Europe is seeing a decrease in pig carcass prices by nearly 9% compared to last year, while the Philippine market is hurting as they deal with African swine fever.
On the Stock market, lean hog futures fell on Wednesday with losses of $3.25 to $3.60, pressured by a weaker cutout. Wednesday’s national average base hog negotiated price was reported at $91.98 by the USDA, up 19 cents from the day prior. The CME Lean Hog Index was another 70 cents higher on February 17 at $90.19
The Wednesday morning USDA FOB plant pork cutout value was down another $3.95 at $95.52 per cwt. The belly was the main driver, down $16.75, with the rib the only primal reported higher. The USDA Federally inspected hog slaughter was estimated at 489,000 head on Wednesday, taking the weekly total to 1.457 million head. That is 15,000 head below last week and down 9,166 head from the same week last year.
