Demand for pork at the consumer level continues to be weak. For 2008, the consumer demand was down 3.5 percent from 2007. Beef demand was also weak with a decline of 4.1 percent last year from a year earlier. Live hog demand for 2008 was up six percent from 12 months earlier. The big increase in exports of pork is the major reason for the strong live hog demand.

Consumer demand is likely to continue weak as we go through 2009 due to the weak general economy but smaller chicken supplies will be positive.

Gilt and sow slaughter data indicates producers are not changing the sow herd very much if any in either direction.

Based on weights of barrows and gilts in Iowa-Minnesota marketings are less current than they have been since June 2008. Weights for the week ending Jan. 24 were above a year earlier for the first time since the week ending June 14th of 2008.

The Iowa-Minnesota weights last week at 269 pounds were 0.6 pound below a week earlier but 0.4 pound above a year earlier. Barrow and gilt carcass weights were the same as a year earlier both of the weeks ending Jan. 10 and 17.

Because of bad weather conditions, United did not hold a sale of pigs this week. Nationally, feeder pigs were a little lower than a week earlier.

Pigs 10-pound basis 50-54 percent lean composite value between $41-42 per head. Pigs 40-pound basis were 50-54 percent lean over $62 per head average. We believe we would rather be a seller than a buyer of pigs at these prices. The weak consumer demand for pork continues to be reflected in pork cutout per cwt. of carcass.
The cutout Thursday afternoon at $57 per cwt. was down $1.13 per cwt. from a week earlier. Loins at $74.56 per cwt. was down $1.36 per cwt., Boston butts at $60.20 per cwt. was down $1.30 per cwt., hams at $38.98 per cwt. was down $2.27 per cwt. and bellies at $72.41 per cwt. was down $1.71 per cwt. from seven days earlier. It continues to be unclear why packers are paying as much as they are for hogs with the current cutout. Hopefully it means exports are strong.

The prices packers receive for exports are not included in the cutout values reported by the USDA.

The prices Friday morning for live hogs were steady to $1.75 per cwt. lower compared to a week earlier. Weighted average negotiated carcass prices Friday morning were $0.25 higher to $0.99 per cwt. lower compared to seven days earlier.

The top live prices Friday morning for select markets were: Peoria $35 per cwt., Zumbrota, Minnesota, $36 per cwt. and interior Missouri $40 per cwt. The weighted average negotiated carcass prices by area Friday morning were: western Corn Belt $59.85 per cwt., eastern Corn Belt $54.71 per cwt., Iowa-Minnesota $59.84 per cwt. and nation $56.46 per cwt.

Slaughter this week under Federal Inspection was estimated at 2,267 thousand head down 0.3 percent from a year earlier.

The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Glenn Grimes or Ron Plain may write to them in care of this publication.