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.
Slumping lean hog futures contracts are causing concerns as they worked lower for multiple sessions. Cash prices have been moving mostly sideways with last week’s base carcass price was 19 cents lower at $89.30/cwt. The pork cutout value has also been locked into a tight range averaging $96.53 last week which was a gain of 21 cents. The National Pork Board is beginning a campaign to promote ground pork as an alternative to higher priced ground beef. This was a strategy that worked well in 2020 and 2021. They are also testing a Boston Butt burger in Iowa and Minnesota – a ground product from the shoulder. Last week’s estimated harvest of 2.366 million was 84,000 fewer than the previous week and 26,000 fewer than last year. This is the first significant decline in several weeks. Exports have been a bright spot but reports include that production has increased in Mexico, China, and Brazil. Pork consumption in Japan has declined due to high prices there. Southeast Asia pork supplies are tight opening opportunities for robust sales to the region.
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