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Hog prices fell across cash, futures, weaner and fat hog markets by the end of the first week of April 2020, echoing cattle market declines. Olymel closed a Quebec processing plant and sought to cancel contracts under force majeure.
Analysts compared the slide to the 1998 Canadian hog crash but noted different underlying causes.
Processing plant closures and disrupted export and retail demand reduce hog slaughter demand, which pressures hog prices and lowers demand for feed inputs in Canada.
realagriculture.comLyndsey SmithApr 5, 2020After 117 past bearish disease events, HOGS moved a median -0.6% over 5 sessions (36% higher; middle half -2.2% to +1.6%), and +1.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Reports of a broad hog price collapse and plant closure/force majeure in Canada reflect processing disruption and bearish sentiment, though published after the window's end and with a Canadian focus.
