April 16, 2009
US wholesale pork prices move up again, hit 5-month high
Wholesale pork prices Wednesday (April 16) were higher for a seventh consecutive day and the ninth time in the last 10, to hit a five-month high.
The previous 2009 high of US$60.80 per hundredweight was hit March 19, but Wednesday's quote easily shot past that to set a new high for this year at US$61.26.
In a Dow Jones Newswires story released Tuesday, analysts had predicted that the US Department of Agriculture's pork carcass composite value, commonly known as the pork cutout, would likely top the March 19 high this week.
The seasonal trend is higher, driven mainly by tighter supplies of slaughter-ready hogs into the spring and summer periods, along with increased demand for grilling cuts such as pork chops and butt steaks. Bacon, made from the belly, is also a popular item during the summer for use on bacon-lettuce-tomato sandwiches and as a topping ingredient on salads.
Analysts predict that the pork cutout value will continue to move upward and reach into the upper $60s to possibly around US$75 by middle to late May.
During the past seven days, the cutout has gained US$5.52, or 9.9 percent.
May lean hog futures Wednesday closed at 71.40 cents a pound, up 22 points on the day and 14.05 cents above April which expired at 57.35.
