Pork exports in August were down 0.8 percent compared to a year earlier. Our biggest foreign customer, Japan, purchased 0.7 percent less U.S. pork than in August 2009. Mexico and Canada each purchased more U.S. pork than in August 2009. In total, 16.7 percent of August’s U.S. pork production was exported.

August pork imports were up 11.3 percent from July and up 23.2 percent from last August. All major suppliers shipped more pork to us than in August 2009. August pork imports equaled 4.6 percent of U.S. production.

During the first eight months of the year, pork imports were up 3.8 percent and pork exports were up 4.9 percent compared to Jan.-Aug. 2009.

The number of hogs imported from Canada during August, 472,103 head, was up 6.1 percent from a year earlier. This was the first time in 29 months that swine imports were above year-earlier. Feeder pig imports were up 9.6 percent while imports of slaughter hogs were down 6.7 percent.

USDA’s Thursday afternoon calculated pork cutout value was $81.25 per cwt., up 34 cents from the previous Thursday. Loins, butts and bellies were higher, but hams were lower.

Despite some strength in cutout, hog prices were sharply lower this week. The national weighted average carcass price for negotiated hogs Friday morning was $64.35 per cwt., $7 lower than the previous Friday.

Regional average prices on Friday morning were: eastern Corn Belt $64.71, western Corn Belt $64.11, and Iowa-Minnesota $64.10 per cwt. The top live hog price Friday at Zumbrota, Minn. was $47 per cwt. The top was $44 per cwt. at Peoria. The interior Missouri live top Friday was $47.50 per cwt., $5.25 lower than the previous Friday.

Last week’s hog slaughter was the largest of the year and this week is bigger still. Hog slaughter totaled 2.263 million head this week, up 0.4 percent from the week before but down 1.3 percent compared to slaughter during the same week last year. Year-to-date, pork production is down 4.5 percent.

The average carcass weight of barrows and gilts slaughtered the week ending October 2 was 201 pounds, up 1 pound from the week before and 2 pounds heavier than a year ago. Iowa-Minnesota live weights last week averaged 272.6 pounds, up 3.7 pounds compared to a year earlier.

The December lean hog futures contract ended the week at $68.90 per cwt., down $4.95 from last Friday. The February contract ended the week at $73.32, down $4.63 from the week before. April lean hogs ended the week at $82.90.

December corn futures ended the week 35 cents higher at $5.63 per bushel. December soybean meal gained $12 this week to settle at $328.20 per ton.

The combination of rising feed costs and falling hog price is rapidly driving down per head profits.

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 Ron Plain may write to him in care of this publication.