The hog markets remain extremely volatile, however prices do look favourable for Canadian hog producers.
That according to Tyler Fulton, Director of Risk Management with Hams Marketing Services.
"The current forward prices represent excellent profitability for producers with some summer months probably approaching $250 per pig as a price," he said. "I say profitability because this is in the context of feed ingredient prices that are generally on the lower end of historical levels."
Fulton expects U.S. cash prices to move higher over the next couple of months. He notes prices could rise another 20 to 25 per cent over the next two months as hog supplies start to shrink.
Speculation about pork exports to China and other Asian countries such as Vietnam and Cambodia (which broke with African swine fever about two weeks ago), is having a major impact on the markets.
"The potential for great export sales from the United States and Canada really can't be understated," added Fulton. "The potential of it is very large. When one considers that if China simply replaced 10 per cent of its losses in domestic herd, that would account for all of the pork that's traded around the world."
Send your news tips, story ideas and comments to [email protected]