US pork exports up marginally in April

 

 

US pork exports during April were up 2.2% compared to 12 months earlier, with 5.5 pounds of pork exported for each pound imported.

 

Meanwhile, pork imports were down 4.6%. During the first four months of 2010 pork exports were up 1.5% and imports down 3.5%. January-April exports to Japan were down 7.1% but shipments to Mexico and Canada were up 25.7% and 10.6%, respectively. Exports to Russia, China and South Korea lag well behind last year. Exports to Hong Kong, Australia, Taiwan and the Philippines are up.

 

Export demand for pork was up 28% in April. During the first four months of 2010 export demand is up 13% compared to January-April 2009.

 

USDA's June supply and demand estimates increased forecasted corn use for ethanol and reduced the expected corn carryover. They are currently forecasting that 34.7% of the 2009 corn crop and 35.2% of the 2010 corn crop will be milled for ethanol.

 

Also, USDA is predicting an average farm price in the neighbourhood of US$3.55 per bushel for the 2009 crop and US$3.60 per bushel for the 2010 crop.

 

USDA lowered their forecast of 2010 red meat production by 0.6% (beef down 0.7% and pork down 0.5%). They also lowered their forecast of 2010 prices (steers down US$2/cwt and live hogs down US$0.50/cwt from last month's forecast).

 

USDA's Thursday afternoon calculated pork cutout value was US$83.62/cwt, down US$1.75 from the previous Thursday. Loins, hams, bellies and butts were all lower this week.

 

The national weighted average carcass price for negotiated hogs earlier last week was US$72.21/cwt, US$1.90 lower than the previous Friday. Regional average prices on Friday morning were: eastern corn belt $71.52, western Corn Belt US$75.03, and Iowa-Minnesota US$75.22/cwt.

 

Last week's hog slaughter totalled 2.026 million heads, up 13.1% from the week before, but down 2.5% compared to the same week last year. The previous week's slaughter was light due to the Memorial Day holiday.

 

The average carcass weight of barrows and gilts slaughtered the week ending May 29 was 201 pounds, the same as the week before and up 1 pound compared to a year ago. Iowa-Minnesota live weights last week averaged 272.3 pounds, up 3.0 pounds compared to a year earlier.

 

The June lean hog futures contract ended the week at US$77.77/cwt, down US$1.28 from the previous Friday. The July contract settled at US$78.55, down US$1.17 for the week. August closed the week US$80.35 lower at US$0.42/cwt and October ended the week at US$73.50/cwt.