US hog markets reach breakeven levels

 

 

The US hog market prices rose across the Corn Belt last week reaching breakeven levels - ending losses that stretch back into the fourth quarter of 2007.

 

The hog markets rose US$2.51-3.70 to US$67.45-70.10/cwt., lean carcass basis, and were equivalent to a US$51-53 live cash hog market. Prices were 20.3% higher than year ago.

 

Analysts attributed the rally, with prices rapidly rising US$6-12 this month, to cold, snowy weather earlier this month that made difficult going for producers trying to move hogs and decreased marketing and weights, with pork production down 12.2% this year.

 

Analysts also cited continued export strength, sudden resurgent demand for pork in the US and decreased imports of Canadian hogs and pork that have made packers "scramble" to buy hogs to fill orders for pork.

 

All cuts rose this week, with hams almost 80% higher than year ago and bellies and loins 20-25% higher.

 

Hog futures indicate that breakeven and higher prices will prevail for the rest of this year, even in the fourth quarter.