Pork producers hope to set record for profitable months

Glenn Grimes, University of Missouri livestock economist, expects profits to continue for a few more months, but he's unsure producers will break the record of 33 consecutive months of profits.

During an interview at the recent World Pork Expo, Grimes said hog prices were up as packers found it hard to buy enough hogs to meet their planned kill schedules.

Grimes said one big reason for the run-up in prices was the recent drop in hog weights.

In late May, slaughter weights were below year-ago levels for the first time since September.

The lighter weights reflect both a slowdown in growth rates due to hotter temperatures and the fact that producers are current in their marketings.

Packers will cut back on their kill schedule in an effort to restore their margins, Grimes said.

Look for the breeding herd to be up 1 percent to 2 percent in USDA's next quarterly inventory survey, which will be released at the end of this month, Grimes said.

For live hogs, Iowa-southern Minnesota basis, he estimated prices averaging lower into the fourth quarter.

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Source: AgriNews

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