World Pork Expo Report This past week we attended the World Pork Expo in Des Moines Iowa where we had great weather.  The expo was well organized and attendance was good.  We commend the National Pork Producers Council for a job well done. Our Observations                 *Producers attitudes we would call neutral – not overly…

World Pork Expo Here we come!! This week we will be at the World Pork Expo. You can find us at the Genesus tent just east of the Varied Industry Building.  We expect good attendance.  The crop is in and going good, there will be no need to stay home and fret about getting things…

Return from China Last week in the commentary we wrote of the car accident we had in China.  I am now truly happy to report our return home.  As you read last week Mike Van Schepdael my business partner and vice president of Genesus received significant injuries.  Fortunately he has had a rapid improvement and…

Roadtrip in China Ends in Crash We have all experienced challenges in our lives, this past week we had just such an experience. We arrived in China on the Saturday.  We had several meetings with customers and prospects.  Last Wednesday we were riding in a GM minivan just outside Beijing heading to inspect quarantine site…

Swine Canada Inventory Report Last week Statistics Canada released April 1st Canada Swine Inventory Report. The breeding inventory is real steady, in 2011 1.311 million in 2012 1.312 million.  That is a 100 head difference year over year – real steady.             The Canada market inventory was up year over year by about 200,000 head…

USDA Livestock & Poultry: World Markets and Trade Expansion is coming! Last week the U.S.D.A. released its projected expectations for the world’s production of beef, pork, and poultry, exports and U.S. market share. 1,000 Metric Tons PRODUCTION 2007 2011 2012 PERCENT CHANGE 2011 TO 2012 BEEF & VEAL 58,438 56,888 57,001 0.2% PORK 94,103 101,662…

Pork Industry Round Up? The Enviropig, developed over a decade ago at the University of Guelph, has had its ongoing funding stopped by the Ontario Pork (Producers group). The Enviropig was genetically altered by an added gene of a rodent which in turn lowered the Enviropig’s phosphorus production.  The end of funding for this ill…

USDA March 1 Report was Bullish! Last week we wrote, after the USDA March Hogs and Pig Report, that” we are still of the opinion $1.00 lean hogs will be reached this summer.”  It’s interesting how one’s view can be so much different than others.  John Harrington, DTN AgDayta livestock analyst, called the March Report…

March Hogs and Pigs Report: No Surprises The U.S.D.A. March 01 quarterly Hogs and Pigs Report did not come out with any big surprises. March 01 Inventory (1000) head 2011 2012 2012 as percent of 2011 All Hogs and Pigs 63,684 64,872 102 Kept for Breeding 5,788 5,820 101 Market Hogs 57,896 59,052 102 Market…

Lean Hog Future Prices Languish Last Friday June lean hog futures closed at 92.225/lb., the lowest daily close of June lean hog futures in the last 9 months.  Not Good.  Since the first of March lean hog futures have dropped 7 cents / lb. or $14.00 plus per market hog in potential value.  Unfortunately most…

USDA Crop Projections: Good News The U.S.D.A. last week released a 2012/2013 crop year projection for a record 14.27 billion bushels of corn.  The U.S.D.A. is predicting farmers will receive $5.00 per bushel in the 2012/2013 crop year. The U.S.D.A. is aggressive in projecting 94 million corn acres to be planted and a yield of…

McDonald’s joints Gestation Parade Last week the world’s largest fast food chain McDonald’s, announced that they wish not to purchase pork from sows raised in gestation stalls at some time in the future.  No exact timeline has been established as McDonald’s is waiting for their pork suppliers proposed plans which they expect in May. The…

Ohio and China This past week we attended the Ohio Pork Congress held at the Crowne Plaza Hotel in Columbus.  Our observations:             *Ohio has 170,000 sows according to the last U.S.D.A. Hog and Pigs Report or about 3.5% of the U.S. sow herd.             *Ohio does not have large hog numbers but the Ohio…

Russia Hog Prices Real Strong This past week we spent several days with Russian swine producers.  The prices in Russia are strong with 270 pound (125kilos) market hogs bringing over $300.00 per head.  With break evens in well run operations at about $150.00 per head the profit potential and reality is $150 a head.  To…

Iowa Pork Congress Report Last week we attended the Iowa Pork Congress held annually in Des Moines Iowa.  Our report and observations: *The Iowa Pork Congress is the premier state event held in the winter months for the swine industry.  Iowa has about 20% of U.S. swine production and the size and scope of the…

This past week we attended the Banff Pork Seminar held annually in the mountain resort town of Banff Alberta. Our Observations             *Banff is a picturesque town set in the Rocky Mountains.  It was cold at -30 degrees Celsius with record low temperatures reported throughout the region.  Genesus hosted two customers from Singapore.  The lowest…

Corn, Soybean, Wheat Prices Drop Corn, soybean, wheat prices all dropped last Thursday, Friday after the U.S.D.A. released several grain inventory, production and usage reports, corn declined 60 cents a bushel, soybeans 46 cents a bushel, and wheat 46 cents a bushel.  All prices are lower due to world ending stock inventories higher than the…

Interdependence in Global Market A decade ago U.S. pork exports were next to non – existent.  Now U.S. pork exports account for about one out of every four hogs produced.  As pork producers, our livelihood is truly dependent on our ability to access global markets.  We need pork exports to remain strong to pull our…

Farm Land Value increase supports Swine Industry The North American Swine Industry is mostly situated where grain and soybeans are grown. The high price of these crop commodities has increased farm land values in North America in there grain and oilseed growing areas.  It’s been estimated that in 2011 U.S. prime farmland has increased in…

World Demand pushes U.S. Meat Exports to Record Levels October net exports of pork, beef, broiler, and turkey were the highest month ever at 1.225 billion pounds and also represented the largest per cent of total U.S. monthly production at 15.5%. The October results for pork exports were also excellent, posting the second highest month…

California and Other Things This past week we went to Southern California on business, it was our first time there.  Weather was good and certainly it’s an area that celebrates the automobile.  Cars wall to wall!  We live close to Detroit and could not help but think how the car pioneers in Detroit ended up…

Optimism: Essential for Swine Producers We have been accused more than once of being overly optimistic in regards to future hog market prices and profitability.  We are optimistic but we have a strong belief our optimism is a characteristic of most of our readers.  To be a hog producer you have to be positive.  Breed…

U.S. Per Capita Meat and Poultry  Consumption Continues to Fall The U.S. corn ethanol policy has done wonders for people who want to push a meatless society.  In 2007, 200.4 pounds total meat, poultry, and seafood (boneless equivalent) per capita, in 2012 it is projected to be 181.9 pounds per capita.  That is a drop…

US Pork Exports Explode Record setting pork exports to China led September U.S. pork exports up 23.6% in volume and 40.5% in value from last year. U.S. September pork exports equated to 26% of the total U.S. pork meat production up from last year’s 22% of total production. For the month, the U.S. exported 183,495…

Canada’s Breeding Herd Steady Statistics Canada released Canada’s Swine Inventory for October 1st last week. Hogs on Farms Canada October 1st (thousands of head) YEAR BREEDING STOCK ALL OTHER HOGS 2004 1628 13216 2010 1307 10577 2011 1308 10681  The Canadian breeding herd is steady at 1.308 million while the market hog inventory has gained…

Road Trip Montana and Alberta Last week we went to the state of Montana and the Canadian province of Alberta.  The purpose of the visit was to have group meetings with Genesus customers and prospects.  Of course, we got to hear about markets and other industry issues. Montana             We had our meeting in Great…

Pork Demand Phenomenal A year ago U.S. 53 – 54% lean hogs were 68.81 per pound.  Last week they were 94.71 per pound that is about $35.00 per head higher than a year ago.  $35.00 per head despite a U.S. weekly marketing’s of 2.323 million just 18,000 head lower than the same week a year…

U.S.D.A. Lowers Red Meat and Poultry Production for 2012 Lower or no profit margins are pushing U.S. total red meat and poultry production lower.  The U.S.D.A. projects over a billion less pounds in 2012 will be produced compared to 2011. U.S.D.A. Projected Production (million pounds 2012)   2011 2012 BEEF 26420 25135 PORK 22660 23074…

CBOT June Lean Hogs Close over $1.00 Last week we called the September Hogs and Pigs Report bullish.  The Chicken Little Economists called it bearish.  When the dust settled last Friday, June lean hogs closed at a new contract high of $100.40 per pound up from $97.75 a pound the day the Hogs and Pigs…

September U.S.D.A. Hogs and Report – Bullish Some of the wizard economists have called the last weeks USDA bearish, we don’t see that.  This summer while we had U.S. lean hogs around $1.00 the U.S. breeding herd did not expand with the September breeding herd at 5.806 million, only 3,000 head greater than the 1st…

CORN PRICE DOWN HARD December corn lost 53.5 cents a bushel last week closing Friday at $6.38.  It is good to see it going down when not so long ago corn was $7.79 and there were some speculators chirping that it might go to $12.00 a bushel. Of course part of the price slippage is…

High Feed Prices: Livestock and Poultry Leaders plead case to Congress Last week leaders from the U.S. Livestock and Poultry Industry met with the House of Representatives Ag Committee chaired by Rep. Thomas Rooney on the concerns about tight feed grain supply.  Following are some of their comments. Phillip Greene, Vice President – Foster Poultry…

U.S Pork Exports Continue Record Pace. Why? U.S. July Exports totaled 169,549 metric tons valued at $480.06 US million – an increase of 16 percent in volume and 24 percent in value. This pushed the 2011 total to 1.25 million metric tons valued at 3.3 billion increases of 14 per cent and 20 per cent, respectively,…

Grain Markets make Hog Production Tricky Proposition *Corn closed Friday at $7.60 up $3.00 a bushel from a year ago.  That’s at least a $25.00 per head farrow to finish increase in cost of production year over year. *On Friday soybean meal closed at $385 per ton up $100.00 per ton from a year ago.…

A week in Russia – A Good Time to be a Russian Pig Produce We spent this last week in Russia.  Here are our observations.             *Our visit was in the Southern Russia region of Kuban.  Kuban is approximately 700 miles south of Moscow.  The climate is much like Kansas – Nebraska warm with lower…

Cash Market Hogs surge Higher Last week the U.S. National lean hog price pushed to over $1.04 per pound (53 – 54% lean).  This is a welcome respite to an industry challenged by unprecedented high feed costs.  This cash prices is $20 per head higher than August lean hog futures were indicating on June 20. …

U.S. Heat Wave Pushes Hog Weights Lower The extreme heat and humidity that swept through the U.S. the last several days not only caused great discomfort for people working in swine barns, cut pigs appetite but also ripped market hog weights lower.  Last week the National Lean average carcass weights hovered around 199.5 pounds per…

National Pork Industry Conference Report Last week we attended the National Pork Industry Conference (NPIC), which was held at the Kalhari Resort, Wisconsin Dells, Wisconsin.  Genesus was a sponsor, here are our observations:             *this year NPIC set a new attendance record in its multi – year history.  The Wisconsin Dells locale is family friendly,…

Corn Ethanol Suffers Set Back Last week the U.S. Senate voted to recall the Volumetric Ethanol Tax Credit at the current level of 45 cents per gallon and a 54 cent tariff on imported ethanol.  The intention is for it to end on July 31st.             The Corn Ethanol apologizers appear to realize the ruse…

Volatile Markets Continue *Last week U.S.D.A. reported that the U.S. has planted 4 million more acres of corn this year compared to last (92.3 vs. 88.19).  The 92.3 million acres was also 1.5 million more acres than the average guess by obviously very average forecasters. *The U.S.D.A. also increased the estimated June 1st inventory of…

Lower Corn plus Higher Hogs Equal Good Week This past week hog producers caught several breaks.  It’s about time!  The list of breaks follows. *A week ago last Friday U.S. lean hogs 53 – 54% averaged $91.27 a lb.  A week later they were $94.87.  That is a bump up of $7.00 per head. *July…

World Pork Expo 2011 This past week we attended the world Pork Expo in Des Moines, Iowa.  Our report and observations: The World Pork Expo was well planned and well attended.  The organizers of the NPPC did a good job. World Pork Expo main theme – PRICE OF CORN – The price shock of plus…

U.S. Swine Industry faces Major Profit Challenge U.S. corn a bushel closed last Friday at $7.58.  That is 80¢ a bushel higher than 3 weeks ago.  Higher corn prices are making it very hard for producers purchasing their feed to make money.  As we look out at Lean Hog Futures for the next year the…

Road Trip to Russia The last week we spent in Russia we participated in the Livestock and Poultry exhibit VIV Moscow and we also toured some customer farms. Our Observations:  We thought Christmas had come early after we spoke to hog producers.  Santa Claus arrived with Live Hogs $1.38 US live weight a lb.  (85…

U.S. Pork Exports Set New Record March 2011 pork exports increased 40% compared to a year ago.  29.4 % of U.S. pork production was exported in March.  Thank goodness without these strong exports and with the current price of feed, the industry would have had huge financial losses.  It is estimated that pork exports in…

Corn Moves Lower July corn has moved from $7.61 a bushel on April 29 to $6.86 a bushel May 6 that is a drop of 75 cents in a week.  That is the right direction in our world, taking $7.50 per hog off swine cost of production.  A drop of 10% in July corn follows…

Tough Week for Hog Producers This past week saw May corn close at $7.54 a bushel, meanwhile in the last 10 days lean hogs dropped from $1.02 lean per pound to a 95.225 cents close Friday wiping a potential $15.00 per head off margins.  That is a nasty move down.  Average U.S.A. 53 – 54%…

Lean Hog Prices Push Closer to $1.00 Cash lean hogs continued to push higher last week with 53 – 54% lean hogs averaging 95.76 lb U.S. at the end of the week up from 82.70 U.S. a year ago or about $27.00 per head.  It is certainly better, but when you consider Omaha corn a…

Pork Exports – Very Strong U.S. pork exports in February accounted for 27% of U.S. pork production versus 25.2% in February 2010.  Total pork exports jumped 15% in value.  A tremendous accomplishment, more pork sold at a higher price. Regular readers of this commentary know we have been predicting for 3 months major U.S. pork…

Pork Commentary By Jim Long President – CEO Genesus Inc. The Iowa – Minnesota lean hog prices held steady last week with Friday’s average $61.99.  This despite a jump of 150,000 head in weekly marketing’s compared to the week before.  In our opinion this was a catch up from the marketing’s held back from the…

Pork Commentary By Jim Long President – CEO Genesus Inc. Looking to 2010 We all know the misery of the last 30 months.  Unpredicted losses have evaporated $6 – $7 billion of equity out of the North American swine industry.  The industry is not bankrupt because there are producers with cash.  The reality is, if…