Hog Market continues to Defy Gravity 北美生猪集镇接二连三违背规律 We have to
say the le…
加拿大加工厂的轶闻仍在一而再一而再？。Canadian Packer Saga Continues?
Hog Market continues to Defy Gravity
It is reported on Tuesday this week, a Toronto, Ontario, Canada judge
will be asked to appoint a receiver to sell the assets of Quality Meat
Packers and Toronto Abattoirs Ltd., two related companies.
We have to say the level of current cash hog prices baffles us.
Jim Long, President-CEO Genesus Inc.
The two companies owned by the Toronto’s Swartz family, owes about $70
million to creditors that include pig farms. Capacity of plant was
30,000 per week approximately.
Last week U.S. Hog Marketings-2,030,000-53–54% lean hogs. $129.31/lb.;
average weight 217.15lbs.
March 20, 2017
The plant has been owned by the Swartz family for three generations.
Some reasons given for the business failure:
Last year same week U.S. Hog Marketings-2,097,000-53–54% lean
hogs.$77.23/lb.; average weight 209.7 lbs.
The U.S. lean hog price is flat lining over the last couple weeks,
hovering around $0.71/lb for 53-54% lean hogs.
· Recent jump in hog prices
Why are we baffled year over year by hog marketings last week were down
3.2% while weights were up 3.5%, essentially we will end up with the
same amount of pork produced year over year.
Now the baffling part with essentially the same amount of pork produced
year over year last week.The lean hog price is 52?/lb. higher this year
or about $110 per head higher.A price difference that is gravity
defying.Demand and price has exploded whether it’s from emotional
euphoric expectation of future collapsed supply and/or real pork demand
from consumers domestically and globally.Whatever the reason the price
is real hogs are trading at the $129, the $129 is not CME lean hog
futures price but real right now.Take the cash.Pay down the bills.It’s
Christmas in April, and there is a Santa Claus, he is delivering
presents to hog producers right now. 2014 The Year of the Pig Farmer.
Quality Meat Packers and Toronto Abattoir seek Creditor Protection
· All packers have had increased hog prices.
·Iowa-Minnesota Average Hog Weight a week ago 281.9 lbs liveweight, down
1.5 lbs from a year ago (283.4 lbs). Tells us hogs are moving about the
same schedule as a year ago.
Quality Meat Packers and Toronto Abattoir an 83 year old company based
in Toronto, Ontario requested court creditor protection last week.
Quality has a potential of 30,000 hogs per week and also processing
capacity.With 750 employees Jim Gracie Vice President of Marketing,
Business and Corporate development at Quality said the 30 days granted
for creditor protection will give the company time to look at
restructuring alternatives.He “didn’t know” if that would include
·Early weans and feeder pigs are staying at relatively strong prices
reflecting good demand and moderate supply. Last week, cash early weans
averaged $42.36 USD each and cash 40 lb feeder pigs $76.73 USD each.
Feeder pig prices reflect a late July marketing period. Early weans mid
to late September.
· PED has hit the whole industry. Ontario has had PED but at levels much
lower than in the USA.
·Last week, U.S. National Base Lean hogs 53-54% were $0.71 lb. A year
ago, they were $0.65/lb. The $0.06 difference is $13/head higher than