Weekly Review: Upward Spiral of Feeder Pig Prices

US - Weekly review of the US hog industry, written by Glenn Grimes and Ron Plain.
calendar icon 10 October 2009
clock icon 4 minute read

Feeder pig prices continued their spiral upward again last week with pigs steady to $3 per head higher than a week earlier. Ten pound pigs are $10-11 per head higher than they were a month earlier.

The prices for 50-54 per cent lean 10 pound pigs last week averaged $28.36 per head, 50-54 per cent lean 40 pound pigs average $31.13 per head. Formula priced 10 pound pigs were $33.68 per head. Formula priced 40 pound pigs were $44.92 per head. Cash or negotiated price for 10 pound pigs was $25.05 per head and 40 pound cash priced hogs were $30.12 per head.

Pigs at United Tel-o-Auction this week were $1-5 per cwt above two weeks earlier. Pigs weighing 50-60 pounds sold from $42-52 per cwt, 60-70 pound sold from $41-42 per cwt and one group of 80 pound pigs sold for $36 per cwt.

If the reported retail pork prices are correct, the demand for pork at the consumer level was up 3.9 per cent for January-August. For this period consumer demand for beef was down two per cent, broiler down 3.4 per cent and turkey was up 5.6 per cent compared to the same period in 2008.

Demand for live hogs for the last eight months in 2009 was down 4.7 per cent and live fed cattle was down 8.5 per cent compared to a year earlier.

Live barrow and gilt weights last week in Iowa-Minnesota at 268.4 pounds per head were down 0.1 pound from a week earlier but up 2.5 pounds from a year earlier. Because at least a portion of the heavier weights this summer was due to cooler than normal weather, we are likely to continue to get weight closer to a year earlier as we go through the fall. Weights are likely to remain some above last year but that is not a given for sure.

For the week ending September 26, barrow and gilt carcass weights under Federal Inspection at 199 pounds per head were up three pounds from a year earlier.

Pork product cutout was pushed lower again this week with the cutout on Thursday afternoon at 52.87 per cwt of carcass down $1.46 per cwt from seven days earlier.

Loin prices at $67.24 per cwt down $1.27 per cwt, Boston butts at $56.04 per cwt up $5.36 per cwt, hams at $41.20 per cwt down $7.26 per cwt and bellies at $66.86 per cwt up $0.50 per cwt from a week earlier.

Live hog prices this Friday morning were steady compared to last week. Weighted average negotiated carcass prices this week were $0.25 lower to $1.29 per cwt higher compared to seven days earlier.

The live prices Friday morning were: Peoria $30 per cwt, Zumbrota, Minnesota, $32 per cwt, and interior Missouri $35 per cwt. The weighted average negotiated carcass prices by areas were: western Cornbelt, $48.14 per cwt, eastern Cornbelt, $46.73 per cwt, Iowa-Minnesota, $48.22 per cwt and nation, $47.09 per cwt.

Slaughter was big again this week under Federal Inspection at 2299 thousand head down 3.2 per cent from the same week in 2008.

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