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.
Hogs
The hog market is benefiting from seasonal demand. How the price of beef will affect pork demand this summer remains to be seen. Many consumers are proving loyal to beef regardless of the price. Although there are signs that price-conscious shoppers are seeking lower-priced proteins. Cash hogs were higher, with a National Base Hog Carcass price of $89.10 last Friday. The pork cutout value averaged $98.12 last week, but has been increasing, having reached $100.12 Friday and $101.09 early this week. Retail prices were 4 cents lower in April, averaging $4.90/pound. Pork chops were 16 cents/pound lower, and hams were 13 cents/pound lower.
The latest World Agricultural Supply and Demand report raised its pork forecast higher on increased hog supplies. This is primarily driven by steadily increasing rates of pigs per litter, as well as higher dressed weights. However, PEDV and PRRS outbreaks are being reported at some large farms. That could decrease the number of hogs available in the months ahead. Feeder pig prices have been holding steady recently with 40-pound pigs averaging $80.05 and early weaned pigs averaging $48.76/head last week.
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