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Veteran Advisor

Hog slaughter numbers are up

The weekly U.S. hog slaughter numbers continue to run higher than expected. Why? Maybe operators are trying to reduce feed costs.

 

Last week, 2.282 million head moved to U.S. processing facilities, 6.8% higher than a year ago. That marks the third straight week in which hog slaughter has exceeded 2011 levels by 6% or more, according to the CME Group's daily livestock report Wednesday.

 

"Our calculations, based on the June market hog inventory data, suggested that slaughter the past three weeks would exceed last year’s levels by 1.4%," the CME Group report stated.

 

So, ethanol plants are not starting the corn demand destruction, instead it's the hog industry? Am I understanding this trend right? What say you?

 

Mike

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6 Replies
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Senior Contributor

Re: Hog slaughter numbers are up

Cheaper costs per pound of gain at lighter weights pencil in better than selling them when they are larger. It is a matter of cutting the fat out of the system without cutting one's throat in the process. The operations where the hogs aren't the top revenue producer can hang on longer than those who are "specialized." It's not pretty feeding hogs high priced corn that you raised, but it's uglier when you have to purchase it hand to mouth. I think many that are still in the business remember the 1995 and 1998 markets quite well and just want to cut their losses before someone else forces them out.

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Veteran Advisor

Re: Hog slaughter numbers are up

I find it real interesting when the experts claimed the  "big producers " could do it   "  cheaper " - seems the retail price of pork doesn't support that subscription ---

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Senior Contributor

Re: Hog slaughter numbers are up

The retailers can...and do dictate usually what the rest of the prices are in the system. That's the price we pay for having WalMart and a few other large grocers controlling the food markets.

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Veteran Advisor

Re: Hog slaughter numbers are up

The spoils of intergration  - it's verticle 

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Senior Contributor

Re: Hog slaughter numbers are up

Their whole story didn't add up.  Too bad they told it with our check off dollars.  More efficient, cheaper, more uniform product, better quality product, blah, blah, blah, blah, ba.  But did it really matter if their story added up?  There really aren't any independent hog farmers (to speak of) left in the US.  USDA has to count the 4-H and FFA kids to get to 60,000 "pig producers".  

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Veteran Advisor

Re: Hog slaughter numbers are up

Farms news on  KRVN  radio station explained  SEABOARD  FOODS are in the process of a 120  - 1000 head barns ---guess they aren't cutting back in  SW  Kansas ----

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