High corn prices likely affecting slaughter weights
US - Regular hog report from Glenn Grimes and Ron Plain for week ending 23rd December 2006.
23 December 2006
3 minute read
The average live weight of barrows and gilts in Iowa-Minnesota was below a year earlier by 0.5 pound for the week ending December 16. This is the twelfth consecutive week for live weights to be below 12 months earlier. The probabilities, in our opinion, are very high that these lighter weights are due to the sharply higher corn prices.
Cash feeder pig prices at United Tel-O-Auction this week were some $2.00-5.00 per cwt above two weeks earlier. The pigs at United this week were all in the 50-pound category and sold from $95.00 to $97.00 per cwt.
The average retail price for pork in November was down 2.5% from October but up 0.9% from a year earlier. For January-November 2006, retail pork prices were 0.7% lower than 12 months earlier.
Live hog prices for January-November averaged 6.0% below a year earlier. However, for November live hog prices this year were 3.7% higher than 12 months earlier.
Pork consumers and pork marketers both benefited by the lower hog prices. Retail prices were down by 0.7% and the total market margin was up 1.6 percent. The producer-retailer margin was up 1.3% and the packer margin was up 3.1% compared to a year earlier.
Live hog prices Friday morning were steady to $0.50 per cwt lower compared to a week earlier. The weighted average carcass price for negotiated hogs Friday morning was $0.95 per cwt lower to $4.69 per cwt higher compared to seven days earlier.
The top live prices Friday morning for select markets were: Peoria $36.50 per cwt, St. Paul $38.00 per cwt, and Sioux Falls and interior Missouri did not report.
Pork product prices continue to hold quite well with the record high slaughter. The cutout per cwt of carcass Thursday afternoon at $63.82 per cwt was down $0.05 per cwt from a week earlier.
The prices by wholesale cut Thursday afternoon were: loins $84.87 per cwt, Boston butts $72.79 per cwt, hams $47.20 per cwt and bellies $78.64 per cwt.
Gilt and sow slaughter continues to run above a year earlier. For the 4-weeks ending December 9, sow slaughter was up 3.2% from a year earlier even after adjusting for herd size. Gilt slaughter for the 7-weeks ending December 16 is running well above normal and last year.
Slaughter this week under Federal Inspection was estimated at 2,201 thousand head, up 7.2% from a year earlier.
Merry Christmas!
ThePigSite News Desk
