Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.
Hogs
Cash hogs were $2.75/cwt higher last week. Lean Hog futures have kept up their momentum with strong gains last week. Domestic pork demand is improving. Hog harvest has been less than a year ago for five consecutive weeks and that is also helping to underpin the market. Last week’s estimated harvest was 2.653 million head, 60,000 more than the previous week but 12,000 fewer hogs than a year ago. Sows made up 2.3% of the total. This year’s harvest pace is still 1% higher than last year. Next week’s Monthly Export report will tell us if strong exports continued in September. The pork cutout value averaged $102.35 last week, an increase of $4.19. Ham, belly, and rib primals all showed strength.
Lamb
The seasonal rally many were expecting in the lamb market was late to materialize. The cash market was higher again this week with USDA calling fed lambs steady to $20/cwt higher for the third week in a row. Wholesale prices were higher as well. The carcass cutout value was $470.17 last Friday compared to $460.79 the week before. The estimated harvest total of 33,000 head was 1,000 fewer than the prior week and 5,000 fewer than a year ago. Shorn lambs brought $150-$170/cwt.
