U.S. pork exports during May were up 12.7 percent compared to a year earlier. Pork imports were down 1.2 percent in May. During May the United States exported 23.2 percent of our pork production while imports equaled 3.7 percent of production. For the first five months of 2011, pork exports are up 17.9 percent and imports are up 1.5 percent.

The big growth market thus far in 2011 has been South Korea which has purchased 157 million pounds (147 percent) more U.S. pork than in January-May 2010. Exports to Japan are up by 81 million pounds; shipments to Russia are up 39.5 million pounds; exports to China and Hong Kong are up 50 million pounds. Feeder pig imports during May were up 4.4 percent from a year earlier. Imports of slaughter hogs were up 10.2 percent.

Cash hog prices were slightly lower this week. The national average negotiated carcass price for direct delivered hogs on the morning report today was $90.88 per cwt., down $1.10 from last Friday.

The Friday morning price report for the Western Corn Belt was $94.30 per cwt. Iowa-Minnesota averaged $94.57 per cwt. The Eastern Corn Belt averaged $88.72 per cwt. Friday’s top live hog price at Peoria was $63 per cwt. Zumbrota, Minn.’s top was $64 per cwt. The top for interior Missouri hogs was $67.50 per cwt., $3 lower than the previous Friday.

The pork cutout value rose this week. USDA’s Thursday afternoon calculated pork cutout value was $98.66 per cwt. up $2.07 from the previous Thursday. Loins, hams, and butts were higher, bellies steady. This morning’s national average hog carcass price equaled 92 percent of the pork cutout value which is more or less a breakeven for packers.

Hog slaughter totaled 2.018 million head this week, up 16.6 percent from last week’s holiday-shortened total and up 0.9 percent compared to the same week last year. Barrow and gilt carcass weights for the week ending July 2 averaged 199 pounds, unchanged from a week earlier, but one pound heavier than a year ago. Iowa-Minnesota live weights for barrows and gilts last week averaged 266.6 pounds, down one pound from the week before and down 1.6 pounds compared to the same week last year. This is the seventh consecutive week Iowa-Minnesota weights have been below the year-earlier level.

The July lean hog futures contract went off the board today at $95.15 per cwt., down 72 cents from the previous Friday. The August hog contract settled Friday at $98.95 per cwt., up $2.78 for the week. October hogs settled at $91.65 and December closed at $87.87 per cwt.

USDA’s June production and price forecast is for more corn acres and a lower price than their June forecast. USDA added 1.6 million acres to their planting estimate, 270 million bushels to their corn production forecast, and lowered their price estimate on this fall’s corn crop by 50 cents to $5.50 to $6.50 per bushel. They also predicted a 100 million bushel increase in ethanol use. USDA is forecasting 2012 pork production to be 1.6 percent above this year and 2.7 percent higher than in 2010. The September corn futures contract gained 59 cents this week to settle at $7.0125 per bushel. December corn futures close at $6.85. The May 2012 contract ended the week at $7.005 per bushel.

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.