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
Hogs were 50 cents higher last week. The pork cutout was $3.33 higher last Friday, posted at $97.83. Typically, both hog and pork prices increase heading into summer, but movement has been mostly sideways in recent weeks. Last week’s estimated harvest of 2.437 million hogs was 49,000 fewer than the previous week and 219,000 more than last year. The number of federally inspected establishments that harvest hogs rose from 659 in 2022 to 763 in 2024. Most new plants harvest fewer than 1,000 head per year and that has done little to offset the closing of the Tyson plant in Perry, Iowa. Weekly harvest capacity in 2024 was calculated at 2,696,392 head, compared to the average weekly harvest of 2,464,735. Packers can increase capacity with larger harvest schedules and operating on Saturdays if needed.
China–U.S. trade negotiations are lending optimism, although pork exported there is still subjected to a 57% tariff. March exports were 3% higher than last year with the first quarter total 1% lower. March pork exports equated to $73.91 per head harvested.
Lamb
The lamb market was called firm last week with the cutout value $4.31 higher at $457.78. The week’s harvest was estimated to 35,000 sheep and lambs, 2,000 higher than the previous week and 1,000 fewer than a year ago. Exports of U.S. lamb muscle cuts in March were 45% higher than a year ago and the highest since December 2019. Through the first quarter, exports increased 26% year-over-year. New crop lambs brought $220-$260/cwt.
