USDA's Foreign Agricultural Service released their biannual livestock world markets and trade circular last Friday. Despite sharply lower hog inventory noted in China after months of liquidation, annual pork production is projected to remain very near the 2014 level in both 2015 and 2016 due to heavier slaughter weights. The U.S. industry will continue to monitor closely any developments in China, where more than half of the world's pork is produced and consumed.
Cash hog prices were down slightly for the week. Thursday's average negotiated carcass price for plant delivered hogs was $69.80/cwt, down $0.90 from last week. The national average negotiated carcass price for direct delivered hogs on the morning report today was $68.78/cwt, down $1.04 for the week, and $29.40 lower than a year ago. The western corn belt price dropped $1.30/cwt. to $68.84/cwt. Iowa-Minnesota hogs sold at $68.97/cwt. this morning, and there was no quote for the eastern corn belt. Peoria had a top price today of $49/cwt, with interior Missouri live hogs at $48.25/cwt, both unchanged from last week.
The pork cutout gained a little ground this week, with this morning's cutout value at $89.24/cwt. FOB the plants, up 90 cents. Hams and butts declined on the week, with other parts of the cutout increasing in value, led by loins advancing 4.0%. This morning's national negotiated hog price equaled just 77.1% of the cutout value, down 2.0% vs. last week's level.
Hog slaughter for this week was 2.318 million head, up 1.2% from last week and 6.1% higher than the same week last year. The average live slaughter weight of barrows and gilts in Iowa-Minnesota last week was 281.1 pounds, 0.8 pounds higher than the week before but 3.4 pounds below a year ago.
The December lean hog contract fell 66 cents for the week to end at $65.47/cwt. February hogs lost 60 cents, closing at $68.35.
December corn closed today at $3.77/bu, down 14 cents from last Friday.
Source: AGEBB