Live Hog Prices Pushed Lower This Week

by 5m Editor
24 February 2007, at 4:43am

US Weekly Hog Outlook, 24th February 2007 - Weekly review of the US hog industry, written by Glenn Grimes and Ron Plain.


The number of hogs and pigs in the U.S. on December 1, 2006, and Canada January 1, 2007, was up 0.4% from 12 months earlier at 76.478 million head. The breeding herd for the two countries at 7.712 million head was up 0.8% from a year earlier.

The total Canadian herd on January 1 was down 2.7% and the breeding herd was down 1% from 12 months earlier. However, the number of sows farrowing in the fourth quarter of 2006 in Canada was up 0.6% and the pig crop was up 0.8% from the same date in 2005.

Remember, the fourth quarter U.S. pig crop was up 1.4% in 2006 from 2005. The combined fourth quarter pig crop was up 1.2% from 2005. The farrowing intentions for the first quarter of 2007 for both countries are for an increase of 1.2% from a year earlier. Remember, the farrowing intentions for the U.S. for the second quarter of 2007 is for an increase of 0.5% from 2006.

These data continue to support the belief that hog slaughter in the U.S. and Canada in 2007 will be up a little from 2006.

Average live weights for barrows and gilts last week at 267.2 pounds per head was up 0.4 pound from a week earlier, but down 3.4 pounds from a year earlier. This was the twenty-first consecutive week with weights below a year earlier. The average decline in weight for the last 7 weeks is slightly over 3 pounds per head.

Retail pork prices in January were 0.2% below December 2006 but the same as January 2006.

Live hog prices in January were 6.5% above a year earlier. The stronger hog prices resulted from the total marketing margin in January being 2.2% below 12 months earlier. The wholesaler-retailer marketing margin was 4.3% below 2006, but the packers' margin was up 7.5%.

Live hog prices were pushed lower this week. Friday morning live prices were down $1.50 to $3.50 per cwt compared to a week earlier. The top live prices for select markets Friday morning were: Peoria $42.50 per cwt, St. Paul $44.50 per cwt, Sioux Falls did not report and interior Missouri $44 per cwt.

The weighted average carcass prices Friday morning in the negotiated trade were $3.67 to $4.39 per cwt lower compared to 7 days earlier. The carcass prices by area Friday morning were: western Cornbelt $64.21 per cwt, eastern Cornbelt $60.92 per cwt, Iowa-Minnesota $64.79 per cwt and nation $62.32 per cwt.

Pork cutout values per cwt of carcass were pushed lower this week. The value in the Thursday afternoon report at $69.40 per cwt was down $3.52 per cwt from a week earlier. Loins were down $2.25 per cwt at $91.31 per cwt; Boston butts at $77.61 per cwt were down $2.43; hams were down $5.96 per cwt at $53.88 per cwt; and bellies at $90.14 were down $7.85 per cwt.

Slaughter under Federal Inspection was estimated at 2,006 thousand head, up 2.2% from a year earlier.

Frozen pork supplies on January 31 were up 10% from a month earlier, but down 8% from last year. Stocks of pork bellies were up 11% from last month, but down 15% from last year.

ThePigSite News Desk

5m Editor