December 18, 2006

 

US pork output still up 1.4 percent in 2006 despite recent slip

 

 

US commercial pork production for the year remains 1.4 percent above a year ago and is on a record-setting pace despite slipping below year-earlier levels the past three weeks, according to USDA.

 

Federally inspected hog slaughter has dipped under the year-ago figures in four of the last five weeks. Meanwhile, average hog weights in Iowa/southern Minnesota - the largest hog producing region in the country - have been below a year ago for 11 consecutive weeks.

 

Industry sources said excellent weather conditions for hogs this fall may have resulted in the animals reaching slaughter weights faster, so some of the hogs originally scheduled to reach slaughter weight in late November and December may have been shipped one to two weeks early. That could account for some of the modest reductions in slaughter during the past three weeks, they said.

 

There have also been reports in parts of the Midwest of increased death losses of growing pigs due to circo-virus

disease.

 

Rising feed costs are contributing to the lighter hog weights, the sources said. Although many producers may have hedged their feed costs through corn futures or outright buying corn at cheaper prices than currently quoted, steep gains in corn prices over the past three months are causing some producers to sell their hogs at lighter weights.

 

Ron Plain, agricultural economist at the University of Missouri, in his latest weekly hog outlook report said "sow slaughter from domestic production for the latest six-week period ended Dec. 2 is up 17,291 head from a year earlier. Gilt slaughter also continues to run above last year and (above) normal.

 

Beef and pork packers planned to process more animals on Saturday than last weekend, which offset reductions during the week that had resulted from the raid Tuesday on six Swift and Co. plants by the US Department of Homeland Security's Immigration and Customs Enforcement division.

 

The USDA estimated this week's cattle slaughter at 645,000 head, compared with 643,000 a week ago and 635,000 a year ago. Year-to-date cattle slaughter is 31.910 million head, up 3.9 percent from 30.700 million a year ago.

 

The USDA estimated total beef, pork and lamb production for the week at 945.7 million pounds. Last week's output was 937.0 million, and the year-ago figure was 934.0 million pounds. Year-to-date combined meat output is 45.152 billion pounds, up 3.8 percent from a year ago.