Ontario hog prices showed stability during the week ending June 19, while feed costs continued to trend lower and U.S. hog markets remained under pressure.
The Ontario 100% Base Formula Price reached $234.66/cwt, essentially unchanged from the previous week and continuing a gradual upward trend seen throughout June. Despite recent strength, prices remain well below year-ago levels, when the formula price stood at $264.51/cwt. Ontario weaned pig values climbed to $61.01 per head, while feeder pig values reached $96.80.
Market hog sales in Ontario totaled 111,634 head, representing 103 percent of the previous year’s volume. Dressed weights remained steady at approximately 106 kilograms, indicating producers continue to market hogs in a timely fashion.
South of the border, U.S. cash markets showed signs of weakness. The CME Constructed Lean Hog Price slipped to US$92.16/cwt, while the USDA pork carcass cutout declined to US$95.59/cwt. Both indicators remain below year-ago levels, reflecting ongoing pressure in wholesale pork markets despite generally solid demand.
One positive development for producers has been the continued decline in feed costs. Soybean meal prices in Hamilton fell to $514.02 per tonne, down significantly from late May levels. Corn values also remain below spring highs, helping improve margin opportunities for producers as summer progresses.
The Canadian dollar weakened further, closing the week at US$0.7057. A softer Canadian dollar generally supports export competitiveness and can provide additional support for Canadian hog values.
Looking ahead, futures markets suggest caution. CME Lean Hog futures for July closed at US$95.03/cwt, while October futures settled at US$81.33/cwt, reflecting uncertainty about demand and profitability in the second half of 2026.
While profitability has improved compared to the difficult conditions experienced in 2023 and 2024, producers continue to focus on efficiency, feed management, and cost control as the industry works to rebuild financial strength.
Source : Swine Web