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.
Domestic pork demand remains steady. The average retail price of pork in August was $5.00/pound, unchanged from July. The pork cutout has held steady as well, averaging $114.59 last week. Packer margins have been in the black so far this month. Higher hog prices and lower feed costs have brought profitability for farrow to finish farmers. Feeder pig prices have moderated somewhat but remain well higher than this time last year. Early weaned pigs averaged $57.05 last week compared to $36.67 a year ago. Forty-pound pigs averaged $73.39 last week, compared to $55.08 this time last year.
The estimated harvest last week was 2.514 million. That was 200,000 head more than the previous week, which was shortened due to Labor Day, and 63,000 fewer than last year. This was the largest total since April. More hogs are expected to come to market now through the end of the year, but it is unknown if the numbers will reach last year’s levels. Hog weights will be worth watching as packers should be motivated to keep the supply current.
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