June 18, 2007

 

US hog/pork prices up on week despite more kills than year ago

 

 

US cash hog and wholesale pork prices climbed this week despite a 5.7 percent increase in the number of swine slaughtered compared with the same week a year ago.

 

The US Department of Agriculture's national hog report weighted average price Friday (Jun 15) afternoon was shown at US$72.55 per hundredweight, up US$3.07 for the week. The wholesale pork carcass composite price Friday was at US$77.35, up US$4.46 from a week ago, but down from Thursday's quote of US$78.17. Thursday's cutout value was the second highest of the year, behind only the May 15 quote of US$78.19.

 

Market analysts and meat distributors said buying interest from retailers for Independence Day holiday promotions and fill-in orders for the second half of June contributed to the strength in wholesale pork prices.

 

Lean hog futures prices also rallied this week. The July and August hog contracts Friday hit nearly eight-week highs and closed at their highest levels since April 25.

 

In other news this week, the USDA reported pork export sales for April down from a year ago for a third consecutive month, which put the year-to-date figure slightly below a year ago as well. Among the larger international customers, the largest decline in sales was to Mexico.

 

Glenn Grimes and Ron Plain, agricultural economists at the University of Missouri, said in their weekly pork outlook report released Friday afternoon that this may be the year in which the string of 15 consecutive years of record pork exports will be broken.

 

Beef exports for April and for the year to date were up from 2006. The US Meat Export Federation's website shows total beef exports, including variety meats such as livers, kidneys and tongues, were up about 11 percent in April and 13 percent for the January-April period. Mexico was the largest customer for US beef, but sales there were down slightly compared with a year ago.

 

Cattle/hog slaughters

 

US cattle slaughter for the week was estimated at 711,000 head, compared with 701,000 a week ago and 708,000 a year ago. Year-to-date slaughter stands at 15.330 million head, up 2.0 percent from a year ago.

 

The USDA estimated this week's hog slaughter at 1.924 million head, compared with 1.903 million a week ago and 1.821 million a year ago. The year-to-date total is 47.800 million head, up 2.0 percent from a year ago.

 

Total meat production

 

The USDA estimated total beef, pork and lamb production for the week at 928.5 million pounds. Last week's output was 915.7 million pounds. The year-ago output was 915.4 million pounds. Year-to-date combined meat output is 21.464 billion pounds, up 1.2 percent from last year.

 

Broiler/fryer slaughter for the week was estimated at 164.375 million head, compared with 164.047 million a week ago and 163.708 million a year ago.