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CME: June Hog Slaughter 3.2% Higher Than a Year Ago

24 July 2017, at 6:05am

US - USDA released Thursday afternoon its monthly tabulation of livestock statistics for June and the data contained some interesting insights, reports Steiner Consulting Group, DLR Division, Inc.

Hog production has been rising consistently in the last few months although, as with cattle, the pork supply increase has been slower than slaughter due to lower carcass weights.

June hog slaughter was 9.870 million head, 3.2 per cent higher than a year ago.

Q2 slaughter total stands at 29.2 million head, 3.7 per cent higher compared to a year ago. Total pork production for June was 2.053 billion pounds, about 40 million pounds (+2 per cent) compared to a year ago.

The reduction in weights has shaved about 1.2 percentage points from pork production and limited overall pork availability this summer. We do not have export data for June yet but our preliminary estimates are that the pace of pork exports moderated in June and it will likely be lower than a year ago in July.

Based on weekly exports, our June projection is for pork shipments to be up about 3 per cent or around 13 million pounds compared to last year.

Producers have been culling more sows in the last few months but that is to be expected considering the larger breeding herd.

Sow slaughter in June was 256,100 head, 6.8 per cent from a year ago. Q2 sow slaughter was 743,700 head, 42,100 head (+6 per cent) higher than a year ago.

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