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
There is cautious optimism in the pork sector. Futures prices at the CME have been moving higher, with prices 21% higher than this time a year ago. The cash market was $2/cwt higher last week with a national base carcass price of $91.35/cwt. Wholesale prices have moved higher as well. After averaging $99.77 last week, the pork cutout value was $101.46 last Friday and $103.73 this Tuesday. Pork exports had a good week, with net sales 68% higher than the four-week average. Mexico again emerged as the leading buyer. Domestic demand has remained steady at around 54 pounds/year per capita. The harvest estimate last week was 2.362 million head, 38,000 fewer hogs than the week before at and 9,000 head fewer than a year ago.
Lamb
Last week brought a third week of steady lamb prices. Firm prices are welcome after consecutive weeks of losses. Conventional market lamb prices tend to work higher this time of year but tend to move lower during the summer months. The lamb cutout value was higher as well, gaining $7.48 last week to $460.32 on Friday. The estimated harvest of 39,000 sheep and lambs was 3,000 more than both the previous week and the same week last year. Lamb and mutton production was higher last week due to both the larger harvest and heavier live and carcass weights. New crop lambs brought $230-$257.50/cwt.
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