Record grocery store prices slow movement which has combined with the ongoing increase in hog slaughter to cause a big drop in hog and pork prices in recent weeks. Hog carcass prices have declined by $34.72/cwt in the last six weeks. During the same period, the pork cutout value is down $27.91/cwt.
The national average negotiated carcass price for direct delivered hogs on the morning report today was $94.22/cwt. That was down $8.54 from last week, but up $2.76 compared to a year ago. The eastern corn belt's morning average price was also $94.22/cwt. Neither the western corn belt nor Iowa-Minnesota reported hog sales on today's morning report. Peoria had a top today of $65/cwt. Interior Missouri live hogs had a top price of $73.50/cwt, down $3.50 compared to last Friday.
The pork cutout value suffered another drop this week. This morning's cutout was $106.76/cwt FOB the plants, down $6.53 from last Friday. Loins, butts, hams and bellies were all lower. The cutout is $8.17 above a year ago. This morning's hog carcass price equaled 88.3% of the pork cutout value.
This week's hog slaughter totaled 1.991 million head, down 1.3% from the week before and down 9.7% from the same week last year. The average live slaughter weight of barrows and gilts in Iowa-Minnesota last week was 282.5 pounds, down 1.3 pounds from the week before, but 10.5 pounds heavier than the same week last year. This was the 14th consecutive week with weights at least 10 pounds heavier than a year ago.
Hog futures also were lower this week. The October hog futures contract ended the week at $92.87/cwt, down $2.08 from the previous Friday. December hogs lost $1.90 this week to close at $87.15/cwt. February hogs ended the week at $86.52/cwt.
Source: AGEBB