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.
Pork
Two months ago, the pork cutout value was struggling to push past $100 and cash hogs were moving sideways. This week the cutout value is over $121. Belly prices have been strong as BLT season approaches. The cash market has improved, with the national base hog carcass price $4.37 higher last week at $103.48. Market hog supplies are current, with live weights lower than last year. USDA’s Monthly Slaughter report indicated May pork production and harvest were both 2% lower than last year. Year-to-date harvest is 1.6% lower than a year ago and pork production is 2% lower. Estimated harvest last week was 2.365 million, 10,000 fewer than the previous week and 47,000 fewer than the same week last year. This week’s Quarterly Hogs and Pigs report will give a picture of future supplies. Feeder pig prices also tell the story of lower supplies. The 40-pound feeder pig price was $88.15 last week, with early weaned pigs bringing $53.57/head. While these prices have come off the highs seen in the spring, they are still about $10/head higher than this time last year.
Lamb
Light lambs were $15-$20/cwt lower last week with those over 90 pounds called firm. The cutout value was $1.92 lower last week at $452.23. Sheep and lamb harvest has been steady with last week’s estimate of 37,000 lambs. That is equal to the previous week and 1,000 more than last year. USDA reported May lamb and mutton production up slightly in its Monthly Slaughter report, with harvest slightly less than last year and the average live weight one pound heavier to average 122 pounds. Year-to-date production is 3% higher with harvest 1% greater. Light lambs brought $150-$210/cwt.
