This has been a good week as to cash hog prices

by 5m Editor
7 February 2004, at 12:00am

US Weekly Hog Outlook, 6th February 2004 - Weekly review of the US hog industry, written by Glen Grimes and Ron Plain.

Need a Product or service?
Animal Health Products
Swine Breeders and Genetics
Pig, Hog Feed and Ingredients
Swine manure, waste and odor
Pig, Hog and Swine Books
Ron Plain
Ron Plain

Live prices this Friday morning were $1 to $5.50 higher, compared to a week earlier. Top live prices for select markets this Friday morning were: Peoria $42, St. Paul $41.50 and interior Missouri $41.50.

The average weighted price for 185# carcass with 0.9-1.1 inch back fact 6 sq. inch loin 2 inches deep were up $2.89 to $4.10 per cwt compared to last Friday morning. These carcass prices by area were: western Cornbelt $59.35 per cwt, Iowa-Minnesota $59.26 per cwt and nation $58.71.

These hog prices were supported by pork product prices with all of the major wholesale cuts showing gains for the week. Loins with quarter inch trim $122.50 per cwt --- up $8.75 per cwt for the week. Boston butts with quarter inch trim up $9.75 at $71.00 at noon Friday. Hams weighing 17-20 pounds were up $5.00 per cwt at $54.00 per cwt and 14-16 pound bellies at $93.00 were up $9.00 for the week.

This stronger demand indicated this week is certainly needed with pork production running as much above last year as it has to date. We are hoping these stronger loin prices are a reflection of stronger exports to Japan. The rally in all cuts supports the possibility that the stronger prices are driven by U.S. demand.

Slaughter continues to run above a year earlier. For the first 6 weeks ending in 2004, hog slaughter under Federal Inspection is estimated at 11.789 thousand head --- up 4.1% from last year.

The correct weekly data on imports of live hogs from Canada indicates most or all of the above increase in production is U.S. based with the exception of imported feeder pigs from Canada.

The data from the hog structure study with 72 returns from producers marketing 50,000 head or more annually still shows growth in production from 2003 to 2004. The good news is the amount of growth has moderated from the early returns.

The good news also is that practically all of the indicated growth is more hogs through the same facilities or purchasing facilities already in production.

Feeder pig prices this week at United Producers Tel-O-Auction were from $5-18 per cwt above 2 weeks earlier. These prices by weight groups were: 40-50# $83.50-95.50, 50-60# $75-94, and 60-70# $80.

Live weights for barrow and gilts for the week ending January 31 at 265.8# were up 1.4# from a week earlier and up 2.8# from a year earlier.

Slaughter continued to stay below 2 million heard this week under Federal Inspection. However, some of the reduction may have been due to nasty winter weather over much of the hog beef.

Slaughter this week under Federal Inspection was estimated at 1916 thousand head --- up 2.3% from a year earlier.

5m Editor