By RON PLAIN
Hog Outlook 

Domestic meat demand has been strong in recent months, but export demand has been weak. Domestic pork demand was up 2 percent in April. April was the 28th consecutive month with demand stronger than a year earlier. Export demand for U.S. pork was down 10 percent in April.

U.S. pork exports were up 10.9 percent in April with big increases in shipments to South Korea, Japan and Mexico. This was the first month since June with export tonnage higher than a year ago. U.S. pork imports were up 10.5 percent in April. This was the 14th consecutive month with imports above the year-earlier level. During April, 23 percent of U.S. pork production was exported and imports equaled 4 percent of production.

Hog imports from Canada were up 17.2 percent in April with the increase mostly coming from more slaughter hogs rather than feeder pigs.

This was a mixed week for hog prices. The negotiated carcass price for plant delivered hogs Thursday, June 4, averaged $78.60 per cwt., which is 94 cents lower than a week earlier. Peoria had a top live price June 5 of $54 per cwt., $1 lower than the previous Friday. The top price June 5 for interior Missouri live hogs was $55 per cwt., down 75 cents from the previous Friday. The national average negotiated barrow and gilt purchase price on the morning report June 5 was $78.43 per cwt., up 95 cents from the previous Friday. There were no regional negotiated price quotes Friday, June 5.

The morning pork cutout value Friday, June 5, was $85.41 per cwt. FOB the plants. That is down 67 cents from the week before and down $34.18 from a year ago.

Packer margins tightened a bit last week. The morning national negotiated hog price June 5 equaled 91.8 percent of the cutout value.

Hog slaughter last week totaled 2.124 million head, up 14.4 percent from the week before and up 10.3 percent from same week last year. Year-to-date hog slaughter is up 5.9 percent and pork production is up 5.7 percent.

Since March 1, barrow and gilt slaughter has averaged nearly 1.5 percent above the level implied by the March inventory survey. Look for USDA to revise upward the size of last fall’s pig crop in its next hog inventory report.

The average live slaughter weight of barrows and gilts in Iowa-Minnesota last week was 282.9 pounds, up 2.5 pounds from the week before, but down 3.8 pounds from a year ago. That was the tenth consecutive week with weights lighter than last year.

The June lean hog futures contract closed Friday, June 5, at $81.67 per cwt., down $2.15 for the week. July hog futures ended the week at $81.12 per cwt., down $2.33 from the week before. August hogs lost $1.68 last week to close at $80.82 per cwt. The October contract settled at $70.42 per cwt.

USDA estimates that 95 percent of corn acres had been planted by May 31.

The May corn futures contract settled at $3.605 per bushel June 5, up 9 cents for the week. The September corn contract ended the week at $3.675.

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 may write to him in care of this publication.