Grimes and Plain Weekly Hog Outlook

CHICAGO - Sep 7/07 - SNS -- Following is a week ending hog market comment from the University of Missouri - Columbia's Glenn Grimes and Ron Plain.

The demand for all meats but broilers was up for January-July of 2007 compared to a year earlier. Consumer pork demand for this period was up 1.7 percent, beef was up 0.8 percent, turkey was up 2.2 percent but broiler demand was down 1.1 percent compared to the same months of 2006. However, broiler demand has improved substantially in recent months.

Live hog demand and live fed cattle demand for January-July shows good growth with hog demand up 3.3 percent and live fed cattle demand up 3.9 percent from a year earlier.

Live slaughter barrow and gilt weights last week in Iowa-Minnesota at 263 pounds were up 1.7 percent from a week earlier and up 1.4 percent from the same week last year. With cooler weather over the next few weeks, it is likely weights will continue to get higher. The highest live slaughter weight for barrows and gilts last fall and early winter was 271 pounds per head, but a year earlier we had one week with weights at 273.8 pounds. We probably will get close to the 273.8 pounds this year but might not equal or exceed it.

Pork cutout this week per cwt of carcass at $67.72 per cwt was down $0.64 per cwt from a week earlier. Loins were up $1.71 per cwt from seven days earlier at $83.84 per cwt, Boston butts at $61.92 per cwt were down $0.87 per cwt, hams were down $3.13 per cwt at $56.99 per cwt and bellies were down $3.36 per cwt at $83.54 per cwt.

Live hog prices Friday morning were $2-3 per cwt lower compared to a week earlier. Weighted average carcass prices under negotiated trade were down $1.95-3.04 per cwt lower compared to seven days earlier.

The live prices Friday morning for select markets were: Peoria $39, St. Paul $41 per cwt and interior Missouri $42 per cwt. The weighted average carcass prices by area were: western Cornbelt $59.99 per cwt, eastern Cornbelt $58.44 per cwt, Iowa-Minnesota $60.62 per cwt and nation $58.90 per cwt.

Slaughter this week under Federal Inspection was estimated at 1,939 thousand head up 2.4 percent from a year earlier.

Issued by Glenn Grimes and Ron Plain

University of Missouri - Columbia

DISCLAIMER: Futures and options trading involve substantial risk. The valuation of futures and options may fluctuate, and as a result, clients may lose more then their original investment. In no event should the content of this website be construed as an express of an implied promise, guarantee or implication by of from the author(s) that you will profit or that losses can or will be limited in any manner whatsoever. Past performance is not necessarily indicative of future results. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

Information on this page is derived from third parties and is deemed to be reliable. STAT Communications Ltd. accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of STAT Communications Ltd. or its management.