Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.
Lamb
Market lamb prices were steady to $20/cwt lower last week. The estimated harvest for last week was 36,000 sheep and lambs, 1,000 more than the week prior and 4,000 more than last year. The cutout value was $470.12 at the end of last week, about $5 higher than the previous week. Lamb prices bottomed in April but have since rebounded. A survey of retail prices shows an average lamb price of $11/pound, putting it above both last year and the average. Shorn lambs brought $165-$185/cwt with a few to $200/cwt.
Hogs
The recent increase in wholesale pork prices will provide incentive for packers to continue an aggressive harvest pace. The pork cutout value was $4.33 higher with a weekly average of $100.18. While beef prices showed weakness to open this week, the pork cutout was continuing to show strength. Cash hog prices were called 60 cents higher last week. It is unclear how much the increase in pork prices will bolster farm gate prices. Last week’s estimated harvest of 2.327 million hogs was 8,000 more than the previous week and up 44,000 from a year ago. Live weights had been climbing but now seem to be reversing course. Increased productivity at the farm level will continue to weigh on the market. Exports have eased somewhat but are still on a strong pace. Farm groups are listening to U.S. presidential candidates’ proposed trade policies with great interest.
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