Farmscape for April 7, 2005 (Episode 1771)
Sask Pork expects yesterday's US International Trade Commission ruling on imported live Canadian swine to have a positive effect on Canadian hog prices.
Yesterday, in a five to zero vote, the US international Trade Commission determined imported live Canadian swine do not injure the American industry.
The ITC's final determination repeals antidumping duties on most imported live Canadian slaughter hogs, weanling pigs and feeder pigs.
Duties, imposed by the US Department of Commerce in October, were adjusted in March and ranged from zero to 13.5 percent with the key "all others" rate set at 10.63 percent and were collected from the importer of record in the form of a bond at the border.
Sask Pork Industry and Policy Analyst Brad Marceniuk says the ruling is positive for Canadian hog producers.
Clip-Brad Marceniuk-Sask Pork
The current dumping duty of 10.63 percent will be removed over the next few weeks.
Also the producers and exporters that have paid duties since the duty was imposed in October of 2004 will be reimbursed their deposits from the US Department of Commerce.
The removal of the dumping duty will be positive for Canadian hog prices as the basis between US and Canadian hog prices is expected to narrow over the coming weeks.
While current Saskatchewan index 100 hog prices are ranging from 132 to 142 dollars per hundred kilograms, we expect hog prices to rebound over the next few weeks to 150 to 160 dollars per 100 kilograms.
With small growth in hog production estimated for the US and Canada in 2005, slaughter capacity and demand for pork will continue to be key factors in maintaining strong hog prices for 2005.
Marceniuk says the value of the Canadian dollar will also continue to be a determining factor in Canadian hog prices.
However, he points out the Canadian dollar has been stable and it's not expected to change significantly in the next few months.
For Farmscape.Ca, I'm Bruce Cochrane.
*Farmscape is a presentation of Sask Pork and Manitoba Pork Council