By RON PLAIN
Hog Outlook
U.S. pork exports were down 13.0 percent in December and down 2.7 percent for all of 2014. The decline in exports was most pronounced for China and Japan. The biggest growth markets were Mexico and South Korea. Japan had been the biggest foreign buyer for many years, but it is now second behind Mexico.
U.S. pork imports were up 35.9 percent in December and up 14.5 percent for all of 2014. Most of the increase came from Canada.
The U.S. imported 4.949 million hogs from Canada in 2014. That is 8,334 fewer than in 2013 and the lowest yearly total since 2000.
The work slowdown at West Coast seaports appears to be the major force driving down hog and pork prices.
The Friday morning pork cutout value Feb. 6 was $74.37/cwt. FOB the plants, down $4.84 from the week before and down $16.80 from a year ago. Ham, belly and loin prices were all lower last week. This was the third consecutive week with a lower cutout value.
The national average negotiated carcass price for direct delivered hogs on the morning report Friday, Feb. 6, was $60.33/cwt., which is $5.78 lower than the previous week and $19.93 lower than a year ago. The Western Corn Belt averaged $60.89 on the Feb. 6 morning report. Neither the Eastern Corn Belt nor Iowa-Minnesota had a morning negotiated price quote that day.
The negotiated carcass price Feb. 5 averaged $60.91/cwt., which was $5.99 lower than the week before. The morning national average carcass price Feb, 6 was 81.1 percent of the pork cutout value.
Peoria had a top live price Feb. 6 of $42/cwt. The top price Friday for interior Missouri live hogs was $44.50/cwt., which is down $2.25 from the previous Friday.
Current hog prices are the lowest since November 2010.
Hog slaughter last week totaled 2.25 million head, down 0.2 percent from the week before but up 4.1 percent from same week last year. Hog slaughter has been above the year ago level for four of the last five weeks.
The average live slaughter weight of barrows and gilts in Iowa-Minnesota last week was 286.4 pounds, up 0.3 pound from the week before and up 4.8 pounds from a year ago. This was the 96th consecutive week that weights have been above the year-ago level.
Hog futures were down last week. The February lean hog futures contract closed Feb. 6 at $63.87/cwt., down $3.60 for the week. April hog futures ended the week at $69.27/cwt., down $2.98 from the week before. May hogs lost $2.85 last week to close at $77.60/cwt. The June contract ended the week at $81.05/cwt.
The March corn futures contract ended the week at $3.86 per bushel, up 16 cents from the previous Friday. The May corn contract gained 15 cents last week to close at $3.935 per bushel. July corn settled at $4.015 per bushel.
The views and opinions expressed in this column are those of the authors and not necessarily those of Farm World. Readers with questions or comments for Ron Plain and Scott Brown may write to them in care of this publication.
