Iowa State University (ISU) calculations put the average production cost for Iowa barrows and gilts marketed in April at $64.37 per cwt. (live). April’s cost was record high for the third consecutive month. ISU estimates the April profit at $13.82 per head marketed.

Through April 23, the number of feeder pigs imported from Canada was down 2.2 percent from the comparable period in 2010. USDA’s weekly data indicates imports of Canadian barrows and gilts for slaughter were down 4.1 percent and slaughter sow imports were down 12.9 percent. The Bureau of Labor Statistics says 244 thousand jobs were added in April, the biggest monthly increase since May. However, the unemployment rate increased from 8.8 percent to 9 percent due to a surge in people re-entering the labor market.

June crude oil futures closed at $98.45 per barrel on Friday, down $15.07 from Monday’s close. The national average gasoline price reached $4 per gallon this week. Barring a rebound in crude oil, gasoline prices should start dropping soon.
Pork cutout, cash hogs and hog futures were all lower for the second week in a row. The national average negotiated carcass price for direct delivered hogs on the morning report today was $87.58 per cwt, down $2.54 from last Friday. The eastern Corn Belt average this morning was $86.42 per cwt. while the western Corn Belt average was $90.57 per cwt., $4.15 higher than in the east. Iowa-Minnesota hogs averaged $91.55 per cwt. on the morning report. Friday’s top live hog price at both Peoria, Ill. and Zumbrota, Minn. was $61 per cwt. The top for interior Missouri hogs was $63 per cwt., down $1.50 from the previous Friday.

USDA’s Thursday afternoon calculated pork cutout value was $90.47 per cwt., down $1.29 from the previous Thursday. Ham prices were higher, but loins, butts, and bellies were lower. Pork bellies are down $24.33 per cwt. from their price just three weeks ago. This morning’s national average hog carcass price was 97 percent of the pork cutout value. The morning hog price in the western Corn Belt was above yesterday’s cutout value. That is obviously not sustainable. Expect lower hog prices next week.

Hog slaughter totaled 1.989 million head this week, up 2 percent from the week before but down 0.2 percent compared to the same week last year. Iowa-Minnesota live weights for barrows and gilts last week averaged 273.3 pounds, up 0.4 pound from the week before and up 2.8 pounds compared to a year earlier.

The May lean hog futures contract ended the week at $93.35 per cwt., down $1.92 from the previous Friday. The June contract settled Friday at $92.37 per cwt. July hogs settled at $92.60 and August hogs ended at $93.95 per cwt. USDA’s latest crop progress report estimates 13 percent of the corn acres was planted by May 1, down from 66 percent planted on that date last year and a five-year average of 40 percent planted.

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.