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Weekly Review: Pork Cutout Down from a Week Ago

by 5m Editor
14 November 2009, at 8:37am

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

The November USDA estimate of the 2009 corn crop is for a yield of 162.9 bushels per acre, down from the October estimate of 164.2 bushels per acre. This will still be a new record high for corn yield if it comes true.

The current estimate of the 2009 corn crop is 12.921 billion bushels, down from 13.018 billion bushels in the October estimate.

Carryover stocks of corn at the end of the 2009-2010 marketing year is estimated at 1.625 billion bushels down from 1.672 billion bushels in the October estimate.

The midpoint estimate of the 2009-2010 marketing year corn price was increased to $3.55 per bushel up $0.25 per bushel from the October estimate. The future market on Tuesday following the November report had increases of $0.01-0.04 per bushel. Not big changes but if they come true will make financial conditions in the hog industry a little more challenging.

The November estimate for the 2009 soybean yield was increased to 43.3 bushels per acre, up from 42.4 bushels per acre in the October estimate.

This higher yield increased the 2009 soybean crop to 3.319 billion bushels, up from 3.254 billion bushels in the October estimate. This will be the largest soybean crop of record.

Even though the size of the soybean crop was increased a little, soybean meal price for the 2009-2010 marketing year was increased from $275 per ton in the October estimate to $280 per ton in November. USDA believes the higher corn prices will pull soybean meal price a little higher.

Feeder pig prices nationally last week were $3-6 per head higher than a week earlier. Pigs weighing 10 pounds 50-54 per cent lean sold for an average of $34.82 per head, 40 pound pigs averaged $38.33. The formula price for 10 pound pigs was $35.79 and for 40 pound pigs $55.86 per head. Cash price for 10 pound pigs was $34.12 and 40 pound $37.74 per head.

Gilt and sow slaughter data indicates any reduction in the breeding herd is at a quite slow rate.

Cash live barrow and gilt prices Friday morning were steady to $1.00 per cwt higher compared to a week earlier. Weighted average negotiated barrow and gilt price Friday morning were up $0.10 to down $1.48 per cwt compared to seven days earlier.

The live prices were: Peoria $35 per cwt, Zumbrota, Minnesota $36 and interior Missouri $38.50 per cwt.

Weighted average negotiated carcass price by area were: western Cornbelt $52.02 per cwt, Iowa-Minnesota $52.02 per cwt and nation $51.95 per cwt.

The live barrow and gilt weights for Iowa-Minnesota last week at 271.3 pounds per head up 0.9 pound from a week earlier and up 4.3 pounds from a year earlier. Average barrow and gilt carcass weights for the week ending October 31 at 200 pounds per head up one pound from 12 months earlier.

Pork cutout through Thursday this week was down $2.54 per cwt from a week earlier at $57.12 per cwt.

Slaughter this week at 2290 thousand head down 1.3 per cent from a year earlier under Federal Inspection.