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Live Hog Prices Pushed Lower This Week

by 5m Editor
24 February 2007, at 4:43am

US Weekly Hog Outlook, 24th February 2007 - Weekly review of the US hog industry, written by Glenn Grimes and Ron Plain.

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The number of hogs and pigs in the U.S. on December 1, 2006, and Canada January 1, 2007, was up 0.4% from 12 months earlier at 76.478 million head. The breeding herd for the two countries at 7.712 million head was up 0.8% from a year earlier.

The total Canadian herd on January 1 was down 2.7% and the breeding herd was down 1% from 12 months earlier. However, the number of sows farrowing in the fourth quarter of 2006 in Canada was up 0.6% and the pig crop was up 0.8% from the same date in 2005.

Remember, the fourth quarter U.S. pig crop was up 1.4% in 2006 from 2005. The combined fourth quarter pig crop was up 1.2% from 2005. The farrowing intentions for the first quarter of 2007 for both countries are for an increase of 1.2% from a year earlier. Remember, the farrowing intentions for the U.S. for the second quarter of 2007 is for an increase of 0.5% from 2006.

These data continue to support the belief that hog slaughter in the U.S. and Canada in 2007 will be up a little from 2006.

Average live weights for barrows and gilts last week at 267.2 pounds per head was up 0.4 pound from a week earlier, but down 3.4 pounds from a year earlier. This was the twenty-first consecutive week with weights below a year earlier. The average decline in weight for the last 7 weeks is slightly over 3 pounds per head.

Retail pork prices in January were 0.2% below December 2006 but the same as January 2006.

Live hog prices in January were 6.5% above a year earlier. The stronger hog prices resulted from the total marketing margin in January being 2.2% below 12 months earlier. The wholesaler-retailer marketing margin was 4.3% below 2006, but the packers' margin was up 7.5%.

Live hog prices were pushed lower this week. Friday morning live prices were down $1.50 to $3.50 per cwt compared to a week earlier. The top live prices for select markets Friday morning were: Peoria $42.50 per cwt, St. Paul $44.50 per cwt, Sioux Falls did not report and interior Missouri $44 per cwt.

The weighted average carcass prices Friday morning in the negotiated trade were $3.67 to $4.39 per cwt lower compared to 7 days earlier. The carcass prices by area Friday morning were: western Cornbelt $64.21 per cwt, eastern Cornbelt $60.92 per cwt, Iowa-Minnesota $64.79 per cwt and nation $62.32 per cwt.

Pork cutout values per cwt of carcass were pushed lower this week. The value in the Thursday afternoon report at $69.40 per cwt was down $3.52 per cwt from a week earlier. Loins were down $2.25 per cwt at $91.31 per cwt; Boston butts at $77.61 per cwt were down $2.43; hams were down $5.96 per cwt at $53.88 per cwt; and bellies at $90.14 were down $7.85 per cwt.

Slaughter under Federal Inspection was estimated at 2,006 thousand head, up 2.2% from a year earlier.

Frozen pork supplies on January 31 were up 10% from a month earlier, but down 8% from last year. Stocks of pork bellies were up 11% from last month, but down 15% from last year.

ThePigSite News Desk

5m Editor