(file photo/CKOM News Staff)

By Alice McFarlane

African Swine Fever

Swine Fever pushes pork prices

Apr 9, 2019 | 10:22 AM

African Swine Fever continues to be the dominant factor influencing hog prices.

Despite the extremely large availability of North American slaughter hogs, losses in China due to African Swine Fever continue to drive markets.

Hams Marketing Services’ Director of Risk Management Tyler Fulton said there are extremely volatile markets at the highest level in close to 20 years. He said it stems from speculation of how African Swine Fever is impacting the Chinese herd and whether or not the Chinese are going to be active in buying replacements from global suppliers.

“In this circumstance of high volatility and extremely profitable forward contract prices we think that it’s prudent that producers take advantage of some of those prices,” Fulton said.

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There is no guarantee producers are going to benefit to the degree that the forwards currently price the pork. But Fulton said producers should be cautious.

“If you don’t have any price protection on for your 2019 production, we think that stepping into your forward contracts on increments of possibly 20 per cent at current prices and then an additional 10 per cent on additional ten dollar increments is probably a prudent approach,” Fulton said.

It’s not that often that producers have the potential to secure very profitable hog prices straight through to the end of the year. Fulton said because of that producers should be active in managing that.

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alice.mcfarlane@jpbg.ca

On Twitter: @AliceMcF