July 2, 2007

 

US June hog slaughter up 4 percent on-year but falls short on setting new record 
 

 

US weekly hog slaughter rates in June, based on the preliminary data, are up a whopping 4.1 percent from a year ago, but the month's total came in short of setting a new record high.

 

The US Department of Agriculture's weekly data show an average of 1.927 million head, compared with 1.851 million a year ago.

 

Bob Brown, private analyst in Edmond, Oklahoma, said the record for June slaughter was set in 2005.

 

The 2006 June figure was down sharply from the previous year, "so we're comparing against a low year-ago number," he said."

 

Analysts and livestock market managers said higher-than-normal temperatures in May last year along with disease issues likely were factors that pulled slaughter rates down in June.

 

More normal weather conditions this spring and reports of better control of swine circovirus disease through greater availability of vaccines appear to have helped boost slaughter-ready hog supplies this month.

 

Brown said weekly slaughter rates can vary from month to month due to various factors but over a full quarter tend to more closely follow expectations. He said slaughters rebounded in July last year after dropping in June. In 2005, the reverse occurred with weekly slaughters in June larger than the previous year but followed by smaller figures in July.

 

Some analysts and livestock market managers said the USDA's estimates in this afternoon's quarterly hogs and pigs report for the weight breakdown categories appear to be too conservative. They based their views on the number of pigs being imported from Canada, the increases in sow productivity in the US and reports of better control of circovirus on the farms. They also contend that the government's figures for the 179-pound and lighter pigs may be understated by as much as 1 percent to 2 percent.

 

US cattle slaughter for the week was estimated at 696,000 head, compared with 698,000 a week ago and 707,000 a year ago. Year-to-date slaughter stands at 16.729 million head, up 1.7 percent from a year ago.

 

The USDA estimated this week's hog slaughter at 1.939 million head, compared with 1.932 million a week ago and 1.859 million a year ago. The year-to-date total is 51.671 million head, up 2.2 percent from a year ago.

 

The USDA estimated total beef, pork and lamb production for the week at 922.0 million pounds. Last week's output was 923.4 million pounds. The year-ago output was 925.7 million pounds. Year-to-date combined meat output was 23.324 billion pounds, up 1.1 percent from last year.

 

Broiler fryer slaughter for the week was estimated at 173.341 million head, compared with 168.893 million a week ago and 168.518 million a year ago.