By RON PLAIN
Hog Outlook 

U.S. pork exports were up 17.8 percent in September compared to a year earlier with large increases in exports to Japan, China, Mexico and Australia. September was the second consecutive month with exports higher than last year.

U.S. pork imports were down 2.8 percent during September with less pork being imported from Canada, Poland and Denmark than in September 2014.

Pork exports equaled 19.8 percent of September production, and pork imports equaled 4.5 percent of production. During the first nine months of 2015, pork imports were up 14.5 percent and pork exports were down 1.2 percent.

Hog imports were up 9.3 percent in September.

The Bureau of Labor Statistics said 271,000 jobs were added last month, the average hourly earnings increased by 9 cents, and the October unemployment rate declined to 5.0 percent. This is good news for domestic meat demand.

Last week was another bad week for hog prices. The average negotiated price for barrows and gilts purchased on Thursday, Nov. 5, for slaughter plant delivery was $54.47 per cwt., down $8.63 from a week earlier and down $14.79 from three weeks ago.

The national average negotiated carcass price on the morning report Friday, Nov. 6, was $53.36 per cwt., down $7.32 from a week earlier. The Western Corn Belt also averaged $53.36 per cwt., and Iowa-Minnesota averaged $53.57 per cwt. for negotiated purchases Friday morning. There was no morning price quote for the Eastern Corn Belt on Nov. 6.

Peoria had a top live price Friday of $36 per cwt., down $6 from the previous Friday. The top price for interior Missouri live hogs was $38.50 per cwt., down $8.25 from the previous Friday.

The morning pork cutout value Friday was $76.07 per cwt. FOB the plants. That is down $4.54 from the week before. Wholesale belly prices were down $19.61 per cwt. from the previous week and down $45.13 from three weeks ago. Despite this sharp decline, belly prices are still above the year-ago level.

Hog prices continue to be weak compared to the cutout value, in part because the value of byproducts is down 35 percent to 40 percent. Friday morning’s national average hog carcass price was only 70.1 percent of the pork cutout value.

Last week’s hog slaughter totaled 2.36 million head, up 4.7 percent from the previous week and up 6.0 percent from the same week last year.

The average live slaughter weight of barrows and gilts in Iowa-Minnesota last week was 282.7 pounds, up 0.5 pound from a week earlier, but down 2.5 pounds from a year ago. It was the 32nd consecutive week with weights lighter than last year.

Hog futures were lower last week. The December lean hog futures contract settled Friday at $55.00 per cwt., down $4.20 for the week. February hog futures ended the week at $58.30 per cwt., down $4.45 from the week before. April hogs lost $3.58 last week to close at $63.85 per cwt.

The December corn futures contracted settled at $3.73 per bushel Friday. That is down 9 cents from the previous Friday.

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.