There’s a light at the end of the tunnel in the form of higher and more stable hog prices according to the Manitoba Pork Marketing Co-op. Perry Mohr, MPM general manager and chief executive officer, credits robust domestic demand and strong U.S. export numbers.
”We''ve actually seen the market fall back about five dollars (per 100 kilograms) and it could fall back another five dollars before we take what I would call another run-up in the market place,” says Mohr. “We''re going to have a dead cat bounce here coming pretty soon and that will see the market respond favorably again.
Mohr predicts U.S. slaughter numbers will hover around 2.1 million head on a weekly basis. “We need those to remain in that area in order for us to sustain this recovery.”
Mohr notes live hog prices typically peak in the summer before dropping off into the fall and winter but he''s optimistic, once prices peak this summer, that they''ll dip slightly before stabilizing for the rest of the year.