Hog Prices Continue To Struggle

Forward hog contract prices continue to struggle to make any positive headway.

 

Tyler Fulton is the Director of Risk Management with Hams Marketing Services.

 

"Overwhelmingly the hog supply is putting a lot of pressure on cash markets and futures markets and so consequently the forward prices that Western Canadian hog producers can contract for are also depressed...We're dealing with lean hog futures that are the main input into a forward contract price and then you of course will convert it into Canadian dollars and consequently because the U.S. futures are under severe pressure, due to the record large hog supplies, we're seeing really not a lot of opportunity to price at better levels than what we saw five or six months ago."

 

Fulton notes the main issue right now is the cash hog market and how many hogs there are, adding it's putting a lot of pressure on at a time when we would typically be hoping to see increased flow and increased positive price influence coming from the increased exports.

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