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Weekly Review: Japan Contributor to Increased Value

by 5m Editor
18 April 2009, at 8:05am

US - Weekly review of the US hog industry, written by Glenn Grimes and Ron Plain.

Pork exports in February 2009 were down 12.7 per cent from 2008. For January and February, pork exports tonnage was down 10.8 per cent in 2009 from a year earlier.

Pork imports for January and February 2009 were down 8.3 per cent from 12 months earlier.

Our sales of pork in January and February to Japan were up 20.1 per cent, to Mexico up 57.6 per cent, to Canada down 9.8 per cent, to South Korea down 22.4 per cent, to Russia down 55.1 per cent, to China and Hong Kong down 71.4 per cent, to Australia up 72.8 per cent, to Taiwan up 84.5 per cent and to other countries up 2.7 per cent from the same months in 2008.

Net pork exports as a percentage of pork production in 2009 at 13.7 per cent were down from 14.8 per cent in 2008.

Even though pork export tonnage and percent net export of production were down in 2009 from 2008, the value of pork exports per hog slaughtered was $29.96 in 2008 but up to $31.93 in 2009. Pork variety meats in January and February were also up from $4.41 per head in 2008 to $6.74 per head in 2009.

Japan was a big contributor to the increased value. Japan's tonnage was up 20.1 per cent but value was up 33 per cent from a year earlier for January and February.

The average weight of barrows and gilts last week at 269.9 pounds was up 0.8 pound from a week earlier and up 3.5 pounds from a year earlier. It is very obvious that marketings are not as current as a year earlier. Live weights for barrows and gilts in Iowa-Minnesota have been above a year earlier since the week ending January 17. Barrow and gilt carcass weights under Federal Inspection have been above a year earlier since the week of 24 January.

Pork product prices gained some traction this week with price increases through the week. The Thursday afternoon cutout at $61.91 per cwt was up $2.97 per cwt from a week earlier. Loins at $77.65 per cwt were up $4.90 per cwt, Boston butts at $48.73 per cwt were up $3.00 per cwt, hams at $48.75 per cwt were up $6.15 per cwt and bellies at $76.71 per cwt were up $0.05 per cwt from seven days earlier.

National weighted feeder pig prices last week were $1-2 per head higher. Early weaned pigs 10-pound basis averaged $35.44 per head. Feeder pigs 40-pound basis averaged $63.76 per head. It is quite obvious that we have a strong feeder pig market.

Top live barrow and gilt prices Friday morning were $0.75-1.50 per cwt higher compared to a week earlier. Weighted average negotiated carcass prices were $4.03-4.94 per cwt higher compared to seven days earlier.

The live prices for select markets Friday morning were Peoria $36 per cwt, Zumbrota, Minnesota, $39 per cwt and interior Missouri $40.25 per cwt. The weighted average negotiated carcass price Friday morning by areas were: western Cornbelt $59.06 per cwt, eastern Cornbelt $57.67 per cwt, Iowa-Minnesota $59.61 per cwt and nation $58.71 per cwt.

Slaughter under Federal Inspection this week was estimated at 2,122 thousand head down -8.5 per cent from a year earlier.