Pork Profit Maximizer – Food Service Edition

Highlights

Total inventory of hogs and pigs on June 1 was estimated at 73.451 million head, 3.4% higher than a year ago and on the high end of pre-report estimates. This was the highest June hog inventory since USDA started its hog inventory survey. – The total inventory number is made up of market hogs, up 3.4% from last year and breeding hogs, up 3.5% from a year ago. The breakdown of market hogs by weight category implies that hog supplies should start to increase rapidly by late July. The inventory of hogs weighing 120- 179 pounds was 4% higher than a year ago. These are hogs should come to market between mid-July and mid-August. Last year hog slaughter during this period averaged 2.240 million head/wk. A 4% increase in slaughter implies hog numbers surpassing 2.3 million hogs by the end of July and near 2.375 million head by mid-August. This contrasts with slaughter in the last three weeks that has averaged around 2.13 million head. The inventory of under 120-pound hogs was 3.5% higher than the previous year. These are hogs that should come to market in late August, September and October.