The US inventory of all hogs and pigs on June 1 was 64.4 million head, according to the Friday (June 25) USDA Quarterly Hogs and Pigs report.

This is 4% down from June 1, 2009, but up 1% from March 1, 2010.

Breeding inventory stands at 5.79 million head, down 3% from last year but up slightly from the previous quarter, the report said. Market hog inventory, at 58.6 million head, declined 4% from last year but increased 1% from last quarter.

The March to May 2010 pig crop, at 28.2 million head, was down 3% from 2009 and down 2% from 2008. Sow farrowing during this period totalled 2.87 million head, down 5% from 2009 and down 6% from 2008. The sows farrowed during this quarter represented 50% of the breeding herd.

The average pigs saved per litter was a record high of 9.81 pigs for the March to May 2010 period, compared to 9.61 pigs last year. Pigs saved per litter by size of operation ranged from 7.70 for operations with one to 99 hogs and pigs to 9.90 for operations with more than 5,000 hogs and pigs.

US hog producers intend to have 2.89 million sow farrows during the June to August 2010 quarter, down 2% from the actual farrowings during the same period in 2009 and down 6% from 2008. Intended farrowings for September to November 2010, at 2.90 million sows, are down 1% from 2009 and down 4% from 2008.

The total number of hogs under contract owned by operations with over 5,000 head, but raised by contractees, accounted for 44% of the total US hog inventory, down from 46% last year.

Stronger prices, stronger margins, everything is going the way of the producer, said John Nalivka, president of Sterling Marketing, Vale, Oregon, during a teleconference hosted by the Pork Checkoff.

Nalivka said that the expansion is being limited by a lack of available capital and the uncertainty of the economy.