USDA production reports were the dominant force in the markets this week. USDA’s March inventory survey found fewer hogs than the trade was expecting causing a nice jump in this week’s hog futures prices. USDA said the March 1 breeding herd was down 3.9 percent and the market herd was down 2.7 percent compared to a year ago. Spring farrowings are forecast to be down 4 percent and summer farrowings down 2.4 percent.

Lean hog futures responded with a limit up move on Monday and ended the week strongly higher. The April lean hog futures contract ended the week on Thursday (a day early because of the Good Friday holiday) at $74.12 per cwt., up $4.45 from the previous Friday. The May contract settled at $81.72, up $5.17 for the week. June closed the week $5.35 higher at $83.37 per cwt. and July ended the week up $6.07 at $84.42 per cwt.

USDA’s March 31 planting intentions report was a bit bearish for crop prices. USDA is forecasting that U.S. farmers will plant 88.8 million acres of corn, 2.7 percent more than last year. Soybean acres are forecast to be up 0.8 percent at 78.1 million acres. Wheat is the big acreage loser with plantings expected to be down 9 percent to 53.8 million acres. For soybeans, this is the most acres ever; for corn, the most since 2007 and the second most since 1946; and for wheat, the fewest acres since 1971.

May corn futures lost 11.75 cents this week and settled at $3.445 on Thursday. The September contract ended the week at $3.66, down 1.25 cents per bushel from the previous Friday. May soybean meal ended the week at $265.90, down $5 compared to a week earlier.

Cash hog prices stopped a three week decline and closed the week strongly higher. The national weighted average carcass price for negotiated hogs Friday morning was $71.37 per cwt., $6.86 higher than the previous Friday. Regional average prices on Friday morning were: eastern Corn Belt $69.63, western Corn Belt and Iowa-Minnesota both $71.68 per cwt. The top hog price Friday at Sioux Falls was $51 per cwt., up $4.50 from the previous Friday. Zumbrota, Minn., had a top price of $46 on Friday and Peoria topped at $47 per cwt. The interior Missouri live top Friday was $48.25 per cwt., $1.50 higher than the previous Friday.
USDA’s Thursday afternoon calculated pork cutout value was $74.14 per cwt., up $1.86 from the previous Thursday, and up $18.01 compared to the same day last year. Loins, hams and pork bellies were all higher this week.

This week’s hog slaughter totaled 2.179 million head, down 0.4 percent from the week before, but up 0.7 percent compared to the same week last year. Hog slaughter has been above year-ago for two of the last three weeks. Year-to- date pork production is down 4.9 percent.

The average carcass weight of barrows and gilts slaughtered the week ending March 20 was 201 pounds, unchanged from the week before and down 1 pound from the same week last year. Iowa-Minnesota live weights last week averaged 270 pounds, up 0.5 pounds compared to a year earlier.

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