Rising pork supplies have pressured prices lower so far this spring and values are forecast to be under year-ago levels into summer and fall. For now, the impact has been much more significant on hogs rather than wholesale pork values. The average IA/MN base price in March was $56.8/cwt, 14% lower than a year ago while the average pork cutout value was $73.2/cwt, 9% lower than last year. Hog supplies on the ground are a record high for this time of year and it does not take much for producers to fall behind and have to sharply discount hogs in order to get them off the farm.
- Live hog. For the week ending April 14 slaughter was 2.385 million head, up 7.1% from a year ago. In the last two weeks, hog slaughter is up 3.9% vs. year-ago levels.
- Iowa/Minnesota, Base Negotiated Purchase for Barrows and Gilts. Lean hog carcass values at about 49.87 /cwt. on Friday were up $4.65/cwt since Wed. April 4. Prices are down about 6.9 $/cwt compared to year-ago values.
- Loin, 1/4 Trimmed Loin VAC, FOB Plant, USDA (page 8). Prices finished last week at $0.7975, down about 2.6 cent since the Wed. April 4 quote and down about 8 cents from year-ago levels.
- Bnls. Strap on Pork Loins. Prices finished the week at $1.0573 for the strap on loins, down 0.4 cents since Wed. April 4 and down 13 cents from the year-ago levels. Strap off loins at $1.2258 are down 0.3 cents since Wed. April 4 and down about 3.5 cents compared to the year-ago quote.
Please see the rest of the document for our detailed price summary as well as our forecasts for the next six months.