September 21, 2009

The arrival of this year's corn harvest could mean already-heavy pigs might add even more weight as they dine on fresh feed, and that could put pressure on pork prices.

 

It's common for pigs to eat more corn at this time of year as producers get freshly harvested supplies, which tastes better than year-old corn left in the bins.

 

But this comes at a time when heavier carcass weights have already pushed pork output above year-ago production levels, and when pork exports are down. That caused prices to fall. The higher meat output comes despite a drop in the weekly slaughter rate of 1.3 percent from a year ago, since early July.

 

Average hog weights since mid-July have been well above a year ago and at record levels for this time of year. Milder temperatures across the Midwest most of the summer led to above-average weight gains as swine develop the best under those conditions.

 

Better-tasting feed means the hogs eat more and will gain weight faster, said Ron Plain, agricultural economist at the University of Missouri.

 

Dave Stender, northwest Iowa swine extension specialist with Iowa State University, said newly harvested corn has less mould content than the older corn stored from the previous year. Even small amounts of mould can make the feed less appetizing for the hogs. They still eat it, but not as well as they do rations made with new corn, he said.

 

Increased consumption of the new feed will result in improved daily weight gains, so producers may have to be even more diligent in keeping up with their marketings to avoid putting too much weight on the hogs, Plain said. Producers may have to sell hogs a few days sooner than they would normally or market extra loads to keep from having a build-up of heavy animals on the farms.

 

In addition, producers have fewer options of where to sell their hogs, and they could take deeper price discounts if the animals exceed certain weight parameters.

 

The US Department of Agriculture reported average weights for butcher-type hogs in Iowa and southern Minnesota last week at 268.9 pounds, up 7.0 pounds from a year ago.

 

Plain said hog weights have increased by an average of about one pound per year on a live basis during the past 50 years. Improved swine genetics and feed rations, along with packers' preference for larger carcasses up to a point, have contributed to the rise in weights over time.

 

Hog weights last year during the summer and autumn were below the long-term trend line after corn prices hit record highs in June. Hog producers sold the animals at lighter weights to reduce feed usage and cost. Based on the average weights reported since July, the 2009 average should move back above the long trend line, Plain said.