Hog Outlook: August imports up
U.S. pork imports totaled 90 million pounds during August. That is down 2.0% from a year ago and down 0.8% from the month before. More pork came in from Europe than during August 2015, but pork shipments from Canada were down 8.7%
U.S. pork exports totaled 416 million pounds in August. That is up 11.4% from a year ago and up 3.2% from the month before. Japan, Mexico, South Korea and China accounted for most of the increased purchases.
Pork exports equaled 19.4% of August U.S. pork production. Imports equaled 4.2% of our pork production.
Hog imports in August were 484,028 head, up 9.1% year-over-year and up 16.5% compared to the month before.
This week's hog slaughter totaled 2.427 million head. That is the sixth largest weekly slaughter ever. This week's total is down 0.4% from last week, but up 5.8% from the same week last year. The last three weeks have had three of the six largest hog slaughter weeks. As you might guess, slaughter is higher than indicated by the September Hogs and Pigs report.
The long slide in hog prices keeps going. Slaughter hog prices were roughly $2.50 lower this week as hog slaughter continues to run at record high levels for this time of year. The national negotiated barrow and gilt price averaged $45.22/cwt on the morning report today, down $2.65 from a week earlier and down $24.60 from a year ago. The western corn belt averaged $45.51/cwt this morning, down $2.62 from last Friday. Iowa-Minnesota also averaged $45.50 this morning, down $2.63 for the week. There was no regional price quote this morning for the eastern corn belt.
The top hog price today at Peoria was $26/cwt, down $3 from a week ago. Today's top price for interior Missouri live hogs was $33.00/cwt, down $1.50 from last Friday.
Friday morning's pork cutout value was $72.13/cwt FOB slaughter plants. That is down $1.34 from the week before. Loin, ham and butt prices were lower; belly prices were higher. This morning's national negotiated hog price is only 62.7% of the cutout value.
The average slaughter weight of barrows and gilts in Iowa-Minnesota last week was 281.0 pounds. That is up 1.0 pound from the week before and up 0.7 pound from the same week last year.
Hog futures were mostly higher this week. The October lean hog futures contract ended the week at $50.675/cwt, up $1.65 from the preceding Friday. December hogs settled at $42.60/cwt, down $1.375 from last Friday. The February contract settled at $49.30, up 40 cents for the week. April gained $1.15 this week to end at $56.875. June hogs settled at $70.35 today.
Corn futures were higher this week. The December corn futures contract gained 3 cents this week to close at $3.3975 per bushel. March corn futures also closed 3.0 cents higher than last Friday at $3.495/bu. May ended the week at $3.5675 per bushel. July settled at $3.6325/bushel.
