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.
Pork
Cash hogs were $1.10/cwt lower last week. The pork cutout value was relatively steady, averaging $95.44, but showed strength to open this week. Last week’s estimated harvest of 2.613 million was 29,000 more than the week prior. It was also 3,000 fewer head than a year ago. The most recent Quarterly Hogs and Pigs report indicated a high number of hogs nearing market weight, but that projected increase in supply has yet to materialize. According to the Sterling Profit Tracker, farrow-to-finish hog producer margins were at a $9.69 profit per head during the week ending October 12, down $2.53 from the previous week. A year ago, those margins were at a $14.93 loss. Lean carcass prices averaged $77.69/cwt, $1.45 lower than the previous week. Packer margins are estimated to be steady with this time last year. Feeder pig prices are on the rise with the composite price (a combination of formula and cash prices) last week of $61.61/head compared to $44.68 at the beginning of the year, although lower than the peak of $103.01 seen in April.
Lamb
Market lamb prices reversed course last week and were $10-$20/cwt higher. While still lower than this time last year, seasonal demand may be picking up heading into the fall. The lamb cutout value was $5.10 higher last Friday at $473.83. USDA estimates last week’s harvest at 33,000 sheep and lambs, 4,000 head fewer than both the previous week and the same week last year. Lamb and mutton production is 3.1% greater than 2023 year-to-date, with harvest outpacing last year by 4.3%. Carcass weights are running two pounds heavier than a year ago. Shorn lambs brought $125-$165/cwt.
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