The following article has been prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The 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. Edited by Mid-West Farm Report.
Cash hogs were $1 higher last week, with pork prices on the rise as well. Markets have had difficulty continuing that momentum this week, however. We are nearing the time when seasonal highs are typically realized.
The pork cutout was $2.30 higher last week, averaging $115.34. Lower belly prices have been a drag on the cutout this week. Bacon needs for BLT season are likely in the pipeline.
Tariff talk has once again caused concern in the pork market following the announcement of a 17 percent U.S. tariff on tomatoes from Mexico, and hints from Mexico about retaliatory tariffs on U.S. pork. Seventy percent of tomatoes sold in the U.S. are grown in Mexico, and Mexico is the largest buyer of U.S. pork.
June’s average retail price of pork increased two cents from May at $4.92/pound. Bacon averaged $7.09/pound, an increase of 11 cents. Pig farmers remain frustrated that pork has not grown market share as beef prices continue to rise faster than other proteins.
Last week’s estimated harvest of 2.342 million hogs was 11,000 fewer than the previous week and 32,000 fewer than the same week last year. Feeder pig prices were sharply lower last week, with 40-pound pigs averaging $76.44/head and early-weaned pigs averaging $56.76/head.
