Ontario Hog Prices Slide as Feed Costs Climb Heading Into Fall

Ontario pork producers are heading into the fall facing an increasingly challenging margin picture, as hog prices continue to retreat while several key feed-cost indicators move higher.

According to the latest Weekly Hog Market Facts, compiled by Maggie Henry, Swine Specialist with the Ontario Ministry of Agriculture, Food and Agribusiness (OMAFA), Ontario’s 100% Base Formula Price fell to $227.35 per ckg for the week ending September 4. That compares with $231.24 the previous week and $245.62 in early August. A year ago, the comparable formula price stood at $264.85 per ckg.

Hog Values Continue to Ease

The decline is not limited to Ontario.

Quebec’s pool price dropped to $208.25 per ckg, continuing a steady decline from $221.41 in early August. Meanwhile, the Canadian dollar closed the week at US$0.7225.

U.S. hog and pork values have also weakened. The CME Constructed Price finished the week at US$90.67/cwt, compared with $105.94 during the corresponding period last year. The USDA Pork Carcass Cutout Value stood at US$95.03/cwt, well below last year’s $114.51.