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Hog Outlook: Slaughter this week under Federal Inspection was a weekly record high

by 5m Editor
22 December 2007, at 8:47am

US Weekly Hog Outlook, 21st December 2007 - Weekly review of the US hog industry, written by Glenn Grimes and Ron Plain.

Our first estimate of the hog herd for December 1 shows the breeding herd at 101 percent of last year, the market herd at 104.2 percent, and the total herd at 104 percent of 12 months earlier. This report will be released at 2:00 P.M. Central time on December 27.

Pork exports for January-October were up 2.6 percent from a year earlier. For October, pork exports were up 31.4 percent from 12 months earlier. Pork exports to Mainland China and Hong Kong were up 269.2 percent in October compared to October 2006.

For the first ten months of 2007, pork exports to Japan were up 8.7 percent, Mexico down 28.3 percent, Canada up 9.5 percent, South Korea down 7.9 percent, Russia up 4.4 percent, Mainland China and Hong Kong up 113.1 percent, Taiwan down 40.5 percent, Australia up 29.5 percent and all other countries down 5.2 percent.

Pork imports for January-October 2007 were down 0.3 percent from a year earlier. Net pork exports for January-October were at 9.2 percent of production, the same as a year earlier.

Total live hog imports from Canada for January-October were up 11.7 percent from last year. Slaughter hog imports from Canada were up 18.1 percent, and feeder pig imports were up 9.0 percent from 12 months earlier.

The retail price of pork for November was down 2.3 percent from October 2007 but up 2.4 percent from November 2006. For January-November, pork retail prices were up 2.2 percent from a year earlier.

Everyone in the pork industry gained from the higher retail prices, but for pork producers, the gain was only 0.1 percent in price. The processor-retailer margin was up 3.3 percent, and the packer margin was up 3.4 percent for these 11 months compared to a year earlier.

Pork cutout per cwt of carcass on Thursday afternoon at $57.61 per cwt was down $1.64 per cwt from a week earlier. Loins at $73.29 per cwt were up $4.03 per cwt, Boston butts at $62.38 per cwt were up $1.84 per cwt, hams at $40.20 per cwt were down $8.06 per cwt, and bellies at $73.66 per cwt were down $3.68 per cwt from last week.

Live hog prices Friday morning were $3-4 per cwt lower compared to a week earlier. Negotiated weighted-average carcass prices Friday morning were $2.11 to $3.35 per cwt lower compared to seven days earlier.

The top live hog prices Friday morning were: Peoria $30.50 per cwt and St. Paul $31 per cwt. The weighted average carcass prices by geographic areas Friday morning were: western Cornbelt $50.60 per cwt, eastern Cornbelt $47.88 per cwt, Iowa-Minnesota $50.32 per cwt and nation $49.17 per cwt.

Cash feeder pig prices this week at United Tel-o-auction were some higher than two weeks ago. All of the pigs weighed near 60 pounds and sold for $67.50 per cwt. The prices two weeks earlier were 50-60 pounds $64 per cwt and 60-70 pounds $60 per cwt.

The average weight of barrows and gilts last week in Iowa-Minnesota at 269.2 pounds was down 0.8 pound from a week earlier but up 0.1 pound from a year earlier.

Slaughter this week under Federal Inspection was a weekly record high at 2,449 thousand head, up 10.3 percent from a year earlier.

5m Editor