June 11, 2013

Canadian pork exports were down 11.9% in April of which the biggest drop was in shipments to Russia, China, South Korea, and Japan.

Pork shipments to Japan, the country's biggest foreign customer, were down 8.6%. Pork imports were up 8.0% in April, due to more pork coming from Canada. In total, 20.4% of April US pork production was exported while imports equalled 3.6% of production.

During the first third of the year, pork exports were down 14.8% and imports were up 1.9%. Feeder pig imports were down 11.6% in April. The number of slaughter hogs coming south from Canada was up 10.7%. Total swine imports declined by 8.4% in April. January to April hog imports dropped by 8.1% compared to the first third of 2012.

As of June 2, 91% of corn acres were planted, an increase from 86% the week before, but down from 100% a year earlier.

It was a good week for prices. Hogs, wholesale pork, and hog futures were all higher. The national average negotiated carcass price for direct delivered hogs on the morning report Friday (Jun 7) was US$93.74/cwt, up US$2.90 from last Friday (May 31). Neither the eastern Corn Belt, western Corn Belt, nor Iowa-Minnesota sold enough hogs to enough different packers this morning for a published price quote. Peoria had a top live price this morning of US$62/cwt. Zumbrota, MN topped at US$65/cwt. The top for interior Missouri live hogs Friday was US$66.75/cwt, up US$0.75 from the previous Friday.

Friday morning's pork cut-out calculation based on mandatory price reporting was US$96.10/cwt FOB plants, up US$2.59 from the week before. Loin, belly, and ham prices were higher this week. The wholesale belly price set a new record high of US$168.37/cwt on Monday (Jun 10). The average hog carcass price is 97.4% of the calculated pork cut-out value.

Hog slaughter this week totalled 2.018 million head, up 8.1% from the week before and up 0.6% compared to the same week last year. The average barrow and gilt live weight in Iowa-Minnesota last week was 276.7 pounds, up 1.3 pounds from a week earlier and up 1.8 pounds from a year ago. Although this Iowa-Minnesota live weight series is running above the year-ago level, the national average carcass weight is lower than last year.

The June lean hog futures contract closed at US$98.15/cwt Friday (Jun 7), up US$2.53 from the previous week. July hog futures ended the week US$2.40 higher at US$96.25/cwt. August hogs settled at US$95.20/cwt.

The Canadian government released a list of US commodities for potential retaliation as part of the on-going dispute over US rules for country of origin labelling of meats. The WTO gave the US until May 23 to bring our regulations in line with international trade rules. Canada says they will not implement new tariffs until the WTO authorises them.