The following article was 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.
Few people were expecting a bullish Quarterly Hogs and Pigs report last week. Total hog and pig inventory on Sep. 1 was 1.3 percent lower than the third quarter last year but 1 percent higher than the second quarter of this year. Market hog inventory was 1 percent lower than last year and 1 percent higher than the previous report.
The breeding herd is 1.8 percent lower than a year ago at 5.93 million. This represents the smallest breeding herd since 2014. Summer farrowings were the lowest in 30 years. Productivity continues to climb, with the average pigs saved per litter of 11.82 compared to 11.72 last year.
Cash hogs were steady last week. The pork cutout remains steady, averaging $112.42 last week.
Last week’s estimated harvest of 2.537 million was 51,000 fewer than the week before and 18,000 fewer than a year ago. The Monthly Livestock Slaughter report showed August harvest 7.1 percent below a year ago, although much of that can be attributed to one fewer weekday compared to last year. Year-to-date harvest is 2.4 percent below year-ago levels. Pork production has been kept in check by both the lower harvest and lighter hog weights. Cooler weather will likely bring heavier hogs to market. Sow harvest is 5.8 percent lower than last year.
