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Cold Storage Pork Stocks Lower Than a Year Ago

by 5m Editor
26 December 2009, at 9:53am

US - "Mexico's purchases of pork from the US for January-October was up 34.9 per cent from a year earlier and amounted to 67 per cent of our exports to Japan," writes Ron Plain in his weekly review of the hog industry.

However, the value of pork exports from the US to Mexico for January-October only amounted to 33.5 per cent of the value exported to Japan. But if we include pork variety meats with pork exports, the value of our exports to Mexico amounted to 46.6 per cent of our exports to Japan for January-October of 2009.

Cold storage stocks of pork on 30 November were down 7.0 per cent from a year earlier and down 6.0 per cent from a month earlier.

Nationally, feeder pig prices last week were $1.00-3.00 per head higher than a week earlier. The average price for 10-pound pigs was $40.54 per head. The formula price for 10-pound pigs was $39.50 per head, and the spot or negotiated price for 10-pound pigs was $41.86 per head. The average price for 40-pound pigs was $50.70 per head. The formula price for 40-pound pigs was $56.29 per head, and the spot or negotiated price for 40-pound pigs was $50.27 per head.

Pork product prices were pushed lower this week. The cutout for Wednesday afternoon at $67.86 per cwt was down $2.86 per cwt from six days earlier. Loin prices at $90.51 per cwt were down $0.27 per cwt, Boston butts at $60.60 per cwt were down $7.98 per cwt, hams at $56.49 per cwt were down $6.77 per cwt and bellies at $75.60 per cwt were down $0.18 per cwt from Thursday last week.

Demand for pork and live hogs is above a year earlier. With pork production down less than three per cent from a year earlier, pork cutout last week at $70.72 per cwt was up 22 per cent from 12 months earlier. The negotiated weighted average carcass price for the western Cornbelt last week at $61.98 per cwt was up 24.5 per cent from a year earlier. The odds appear high that both domestic and export demand are stronger than a year ago and stronger than expected.

Live hog prices Thursday morning were $1-2 per cwt lower compared to the previous Friday. The weighted average negotiated carcass prices Thursday morning were $2.60-3.01 per cwt lower compared to six days earlier. The top live prices for select markets on Thursday were: Peoria $37 per cwt and interior Missouri $43 per cwt. The weighted average negotiated prices Thursday morning by area were: western Cornbelt $58.98 per cwt, eastern Cornbelt $58.88 per cwt, Iowa-Minnesota $58.98 per cwt and nation $58.88 per cwt.

Slaughter for this holiday-shortened week was estimated at was not available.

The 1 December Hogs and Pigs report will be released 30 December. We expect the total herd to be down 2.9 per cent, the breeding herd to be down 2.7 per cent and the market herd to be down 3.0 per cent.

Merry Christmas!