The April 1 Canada hog inventories continue to show a slow decline in the breeding herd. The breeding herd in Canada was 1.6 percent below a year earlier, the market herd was down 6.4 percent, and the total herd was down 3.1 percent from April 2006.

Manitoba and Saskatchewan continued to show a slow growth rate in the breeding herd.

The combined breeding herd in the United States and Canada on March 1 and April 1 was up 0.4 percent this year compared to last year.

However, the farrowing intentions for both countries for the second quarter of 2007 is for a decline of about 0.2 percent from a year earlier. We have had only three quarters since July, August, and September of 2003 that farrowings in United States and Canada has been below 12 months earlier.

The 6.4 percent decline in market hog inventories shows four times the decrease in Canada breeding herd and is due to the increased export of feeder pigs to the United States. However, the last six-week data available shows feeder pig imports from Canada about the same as in the same weeks of 2006.

Good progress was made last week in corn planting with a jump from 23 percent planted the week ending April 29 to 53 percent planted the week ending May 6. But there has probably been limited planting this week due to rain.

The average live weight of barrows and gilts in Iowa-Minnesota last week at 267.7 pounds is up 0.2 pounds from a week earlier but still 1.2 pounds below 12 months earlier. The average weights of barrows and gilts in Iowa-Minnesota have averaged a little over 0.8 pounds below a year ago for the four weeks ending May 6. This suggests the odds are high that marketing in the Midwest is a little more current this year than in 2006 at this time.

Cash feeder pig prices this week at United Tel-O-auction were $3-$8 per cwt. higher than two weeks earlier. All of the 1270 pigs at United this week were in the 50-60 pound weight groups and sold from $112.50 to $123 per cwt.

Feeder pig prices usually started the seasonal decline by this date. The marketing date for most of these pigs will be September.

Pork cut-out this week on Thursday afternoon at $76.81 per cwt. was up $1.67 per cwt. from a week earlier. Loins were up $2.75 per cwt. at $97.13 per cwt., Boston Butts at $73.97 per cwt. were down $1.22 per cwt., Hams were down $2.48 per cwt at $58.33 per cwt., and bellies at $106.58 per cwt. were up $7.75 per cwt. from a week earlier.

Cash top hog prices last Friday morning were steady to $5 per cwt. lower compared to seven days earlier. The weighted average carcass price in negotiated trade Friday morning were $1.65 to $3.72 lower compared to a week earlier.

The Friday morning cash top prices for select markets were: Peoria $48 per cwt., St Paul $49 per cwt., and interior Missouri $51.50 per cwt. The weighted average carcass negotiated price by geographic area Friday was Western Corn Belt $70.17 per cwt., Easten Corn Belt $69.76 per cwt., Iowa-Minnesota $69.96 per cwt., and Nation $69.95 per cwt.

Slaughter this week under Federal Inspection was estimated at 1934 thousand head down 0.3 percent from a year earlier.
Smithfield Foods announced this week that they were completing the acquisition of Premium Standard Farms. We do not believe this will have any impact on the hog industry in the Midwest.

Readers with questions or comments for Glenn Grimes or Ron Plain may write to them in care of this publication.

This farm news was published in the May 16, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.