Sow prices reached record highs this week. On Wednesday, the national weighted average price for sows exceeded $60 per cwt. live for the first-time ever (at least I cannot find a similar day). Why? We are not exactly sure. Sow slaughter has been below year-ago levels for 6 of the last 7 weeks, down 5.8 percent during this period. This is a bit worrisome for those of us who think we still need a smaller sow herd to ensure a profitable year. One obvious reason for the reduced sow slaughter is fewer sows. USDA said the December breeding herd was 3.5 percent smaller than a year earlier. "

Another reason for record sow prices is strong demand for trimmings. Most sows are processed for sausage. During the last six weeks, the wholesale price of fresh 72 percent lean pork trimmings has averaged 71 percent higher than during the same period last year. As is typical during a recession, lower cost cuts of meat do better than higher cost cuts.

On Wednesday, while sows were selling for an average of $60.33 per cwt., the average price for barrows and gilts sold on a live weight basis was only $55.36 per cwt. Over the last six years sow prices have averaged 82 percent of those of barrows and gilts; or $9.01 per cwt. lower. Occasionally, sow prices are higher. For example, the week ending on Jan. 3, 2009, sow prices averaged an amazing $13.25 above barrow and gilt prices.

This was also a good week for barrow and gilt prices. Hog prices ended the week $2-4 higher than where they started. The national weighted average carcass price for negotiated hogs Friday morning was $68.01 per cwt., $4.64 higher than the previous Friday.
Regional average prices on Friday morning were: eastern Corn Belt $68.16, western Corn Belt $67.52, and Iowa-Minnesota also $67.52 per cwt. The top hog price Friday at Sioux Falls was $51 per cwt., up $3 for the week. Zumbrota, Minn. had a top price of $48 on Friday and Peoria, Ill. topped at $47 per cwt. The interior Missouri top Friday was $47.50 per cwt., $2.25 higher than the previous Friday.
USDA’s Thursday afternoon calculated cutout value was $72.19 per cwt., up $2.73 from the previous Thursday, and up $15.62 compared to the same day last year. Loins, bellies, Boston butts and hams were all higher this week than last.

This week’s hog slaughter is estimated to be 2.163 million head, down 0.7 percent  compared to the same week last year. Hog slaughter has been below year-earlier for each of the last eight weeks.

The average carcass weight of barrows and gilts slaughtered the week ending Feb. 13 was 200 pounds, up 1 pound from the week before but down 2 pounds from the same week last year. Iowa-Minnesota live weights last week averaged 268.4 pounds, up 1.0 pounds compared to a year earlier.

The April lean hog futures contract ended the week at $72.80 per cwt., up $3.15 from last Friday. The May contract settled at $77.92, up $1.82 for the week. June closed the week at $81.40 per cwt.

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.