April retail pork prices fell marginally by 0.6% from the prior month to $4.73 per pound and were 3.2% below last year, according to recent data released by USDA Economic Research Service (ERS).
“Retail pork prices have been slowly declining since the record level of $5.05 per pound in October 2022. Since the peak price in October 2022, retail pork prices have fallen 8.3% or $0.32 per pound. Retail pork prices remaining well in the $4 per pound range and overall lower cutout and live hog prices than last year has created large price spreads between the pork cutout value and live hog prices,” explains the Livestock Marketing Information Center (LMIC) in Steiner Consulting’s daily livestock report.
Since January, the cutout to retail spread and live to retail spread have been tracking above last year and the five-year average. A larger spread between the retail pork price and the cutout value translates to a greater margin for retailers, the report notes.
• In April, the cutout to retail pork price spread was $477 per head, as calculated by LMIC. April’s spread was almost $36 per head above last year and more than $116 higher than the five-year average.
• Based on LMIC calculations, the live to retail pork spread was $509 per head in April, up $23 per head from last year and $107 per head above the five-year average.
• Live hog prices have struggled to gain traction this year with weekly prices ranging from about $74 to $81 per cwt with an average weekly price of $77 per cwt through the first week of May.
• A similar trend has been occurring for the pork cutout value which has averaged $81 per cwt since the start of the year and ranged between about $77 to $88 per cwt.
• Last week, the pork cutout value was $80.62 per cwt. The lower live hog prices and pork cutout values have led to a live to cutout pork price spread of $32 per head in April, based on LMIC calculations. This is below last year’s spread of $44.78 per head and the five-year average of $41.74 per head.
“Each month this year has seen the live to cutout pork price spread track below last year and the five-year average,” LMIC notes. “April’s spread was the lowest since February 2020. The narrow live-to-cutout spread leaves little margin for packer profitability.”
Read More:
Is There a Growing Market for Dollar Store Grocery?
Prop 12 Reactions: From Hogwash to Delight
Recent Trade Agreements Could Have Big Impact on Japan’s Pork Market
