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| Processors, retailers profit from higher pork prices |
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Pork exports in June were down 35.7 percent from a year earlier; 70 percent of the decline was from China and Hong Kong. Pork imports for June were down 3.7 percent from 12 months earlier.
For January-June, pork exports in carcass weight equivalent were down 20.4 percent. U.S. January-June exports to Japan were up 0.3 percent, to Mexico up 38.1 percent, to Canada down 5.4 percent, to South Korea down 12.6 percent, to Russia down 37.6 percent, to Australia up 20.2 percent, to Taiwan up 10.0 percent, to China and Hong Kong down 72.9 percent and to other countries down 23.3 percent.
Our exports in June to Mexico rebounded 35 percent from May and were up 26.8 percent from June a year earlier. Most or all of the decline in pork exports to Mexico because of the H1N1 flu was recovered in June.
Net pork exports as a percent of pork production for January-June at 14 percent were down from 17.8 percent for the same six months of 2008.
Total live hog imports from Canada for January-June were down 33.4 percent from 12 months earlier.
Retail pork prices in July were up 0.1 percent from June but down 0.2 percent from July 2008. However, for January-June retail pork prices were up 2.5 percent from 12 months earlier.
The pork processor and retailer were the only segments of the pork industry to gain from the higher retail prices. The margin for the processor and retailer was up 15.4 percent from a year earlier. The packers’ margin was down 7.8 percent and the producers’ price was down 1.8 percent for January-July compared to 12 months earlier.
Pork product prices were pushed lower again this week with the cutout at $51.34 per cwt. Thursday afternoon, down $0.97 per cwt. from a week earlier. Loins at $66.13 per cwt. were down $2.37 per cwt., Boston butts at $55.64 per cwt. were down $3.65 per cwt., hams at $40.42 per cwt. were up $0.08 per cwt., and bellies at $56.18 per cwt. were up $0.19 per cwt. from seven days earlier.
The odds are quite high for 51-52 percent lean hogs live to be in the upper $20’s for the fourth quarter. Even though demand at the consumer level is holding well, it is not strong enough to offset the weak export demand and wide market margins at the processor and retail level.
Feeder pigs nationally last week were $4-10 per head lower than a week earlier. The average price for 50-54 percent lean ten-pound-basis pigs was $21.82 per head. 40-pound-basis pigs 50-54 percent lean sold for an average of $11.70 per head.
Ten-pound-basis pigs negotiated or spot priced were $7.93 per head. 40-pound-basis pigs spot priced were $10.42 per head. The formula price for ten-pound-basis pigs was $32 per head, and the formula price for 40-pound-basis pigs was $37.68 per head.
Live hog prices Friday morning were down $1 to up $3 per cwt. compared to a week earlier. Negotiated weighted average carcass prices were $0.42-1.42 per cwt. lower compared to seven days earlier.
The top live prices Friday morning were: Peoria $25 per cwt., Zumbrota, Minnesota, $28 per cwt. and interior Missouri $33.50 per cwt. The weighted average negotiated carcass prices by area were: western Corn Belt $45.82 per cwt., eastern Corn Belt $44.31 per cwt., Iowa-Minnesota $45.82 per cwt. and nation $44.64 per cwt.
Slaughter this week under Federal Inspection was estimated at 2.228 million head, down 0.4 percent from 12 months earlier. |
| 8/26/2009 |
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