Markets take a Rest Last Friday, Iowa – Minnesota averaged 69.47 lean a pound down $2.50 from the previous Friday, while the U.S.D.A. pork cut – outs averaged $74.11 the end of last week. To get cash lean hogs to move higher, cut – outs have to improve. It would help a tremendous amount if weekly hog marketing’s would get lower. Last week’s U.S. marketing’s were 2.132 million down 1.4% from the same week a year ago. We expect by late April marketing’s could be closer to 2 million a week. We don’t expect the hog price to show much further strength before then.
- Vomitoxin, moulds in corn, etc seem to be quite prevalent throughout much of the Mid West. Mould inhibiters help and so does general testing to eliminate use in swine rations. Unfortunately, some molds and vomis are slipping through. This will hurt litter size, farrowing rates and growth of hogs. All will cut pork tonnage in future months.
- The overall economic crisis has done other things to hurt production. In a bid to lower costs we are aware of producers who have cut back vaccine use. Some have even made the fatal mistake of eliminating circo virus vaccine. This has in turn increased their mortality and led to more off pigs. Truly bad economics if there is one vaccine that appears to give an excellent return on investment it is circo virus vaccine.
- We are hearing from feeder pig brokers of an almost record amount of off or credit pigs in loads of early weans and feeder pigs. Some of this could be attributed to high prices of early weans ($45) or feeder pigs ($70) that lead to buyers quality expectations to be higher and using credits to lower average load prices. The feeder pig brokers though are saying inspection of small pigs is showing real quality issues. We expect industry economics, feed quality issues, lack of vaccine usage, and an old sow herd is a cocktail leading to poorer quality pigs.
- Last week the U.S.D.A. announced an agreement between the U.S. and Russia to allow U.S. pork to Russia. New rules for export verification regarding Russian microbiological and tetracycline group. Antibiotic residue requirements were the ticket. Russia imported $476 million in 2009. H1N1 issues and delisting of several U.S. plants (drug residue?) were the main cause of the sharp decline.
Categorised in: Pork Commentary
This post was written by Genesus