Last year, weekly hog slaughter did not reach the 2 million head level until the week ending October 4. Continued strong domestic and foreign pork demand, however, is expected to hold third-quarter hog prices 27 percent above the same period last year.

The Quarterly Hogs and Pigs report, to be released on September 24, will provide recent inventories, pig crops, and producers’ intentions for September 2004-February 2005.

Hog Prices Soften on Higher Slaughter

Retail Pork Price Percent change from previous month

August prices for 51-52 percent lean hogs (live equivalent) slid seasonally lower from July as weekly hog slaughter made an early push toward 2 million head per week.

The August hog price, $56.19 per cwt, was almost 4 percent lower than in July. Lower prices are the consequence of large weekly slaughters.

Weekly kills achieved the 2-million-head-per-week mark during the week of August 21st, a level not reached last year until early October.

Hog prices in the third quarter are expected to average between $54 and $55 per cwt, around 27 percent higher than the same period last year.

Third-quarter pork production will likely run about 3-percent higher than last year.

Links

For more information view the full Livestock, Dairy and Poultry Outlook - September 2004 (pdf)

Source: Livestock, Dairy and Poultry Outlook - U.S. Department of Agriculture, Economic Research Service - September 2004