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.
The pork cutout scratched its way above the $100 level of resistance on Tuesday for the first time this year but turned lower Wednesday. This comes after the cutout gained $2.42 last week to average $98.94. The carcass base price averaged $90.69/cwt last week, making it 18 cents lower. Lean hog futures contracts continue to slide lower even with the news of higher pork prices. Last week’s estimated hog harvest of 2.143 million was 173,000 fewer than the full production of the previous week and 7,000 fewer than Memorial Day week last year. Live and carcass weights are slowly decreasing, although last week’s holiday-shortened production schedule may bring heavier hogs to market over the next couple of weeks. Hogs averaged 292 pounds last week, a pound lower than the week prior, but still two pounds heavier than a year ago. Weights typically come down during the summer since heat impacts gains even with climate-controlled buildings. Forty-pound feeder pigs were lower last week, averaging $96.25/head with early weaned pigs averaging $67.36/head. World Pork Expo kicked off Wednesday in Des Moines, bringing hog farmers, industry leaders, and allied industry representatives together.
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