Price Calculation Information
In 2003, Ontario Pork began using the National Daily Direct Hog Prior Day Report - Slaughtered Swine (201) price report in its formula calculations.
Both Ontario Pork and Ontario processors use the National Daily Direct Hog Prior Day Report - Slaughtered Swine price minus 56 cents US for price calucation purposes.
Base Price calculations using the National Daily Direct Hog Prior Day Report - Slaughtered Swine
CME Constructed Price = (Producer Sold Negotiated Hogs (Head Count * Average Net Price * Average Carcass Weight) + Producer Sold Swine or Pork Market Formula hogs (Head Count * Average Net Price * Average Carcass Weight)) divided by (Producer Sold Negotiated Hogs (Head Count * Average Carcass Weight) + Producer Sold Swine or Pork Market Formula hogs (Head Count * Average Carcass Weight))
For example, on May 5, 2003:
CME Constructed Price= (( 46,478 * 54.49 * 194.96) + ( 129,395 * 56.03 * 199.11)) / (( 46,478 * 194.96) + ( 129,395 * 199.11)) = $55.63 (US/cwt)
This will be substituted into Ontario Pork’s Standard Formula
- US $0.56/cwt
x U.S dressing percentage 0.74
x Metric conversion 2.2046
x Exchange rate (Bank of Canada Noon Rate)
divided by Ontario dressing percentage 0.80
divided by 1.1195 divisor
= 100% Ontario Base Formula Price 100 Index
EXAMPLE: If 201 Constructed = $55.63/cwt and Exchange Rate = 1.4223, then