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
The next Quarterly Hogs and Pigs report is not due until the end of September, but it is clear the hog supply continues to outpace last year.
The estimated harvest total for last week of 2.503 million was 9,000 fewer than the week before and 9,000 more than last year.
While futures contracts showed strength last week, cash hogs were $2.50 lower. The pork cutout averaged $96.93 last week, a decrease of $2.76. Hams and Bellies showed the most weakness, and that was carried over to the beginning of this week. It will be difficult for futures to push higher with the weakness developing in both cash and wholesale prices.
July pork production matched beef at 2.3 million pounds. The total was 12.2% more than a year ago, with hog harvest 11.3% more when compared to July 2023. Again, the two more weekdays in July this year should be noted. Year-to-date pork production is 1.5% more than last year.
Lamb
Market lambs were firm to $25/cwt higher last week. The wholesale lamb market remains strong relative to last year. The net lamb carcass cutout value was $470.33 last Friday, making it $2.77 lower than the week before. The cutout value was $450.09 the same week a year ago.
The strength in prices comes at a time when production continues to run higher than 2023. Lamb and mutton production for July was 19% higher than a year ago, with harvest of 185,000 head 16% higher than last year. The average live weight of 120 pounds was three pounds heavier than July last year. Last week’s harvest estimate was 34,000 head, and that was equal to the prior week and 1,000 more than a year ago. Shorn lambs brought $150-$175/cwt, with a few higher.
