HOG MARGIN OUTLOOK
Meeting Your Hog Marketing Needs
HOGS:
Markets
Top Iowa-S. Minnesota hog prices (plant, 51-52% lean) fell from US$27/cwt
(live equiv.) early in the week to US$26.25/cwt on Wednesday. By the end of
the week, prices were slightly higher. U.S. hog slaughter was expected to
increase this week as hogs held over last week due to the adverse weather
were marketed earlier in the week. Packer sales of pork have been relatively
slow and large storage stocks of pork continue to put a damper on the hog
market. With hog slaughter only about 1-2 percent above last year's level,
current hog prices are well below the US$37/cwt (live) producers were
getting a year ago. Hog prices still are expected to reach profitable
levels, but the market has to consume significantly more pork in the short
term to encourage packers to pay cash prices for hogs in the mid US$30/cwt
range. Analysts expect USDA's March 1, 1999 Hogs and Pigs report, to be
released next Friday, to show whether U.S. hog producers have reduced hog
production as much as intended. The estimate of hogs in the heaviest weight
category will give an indication of the number of hogs to be marketed in the
next two months. Manitoba Index 100 hog prices were estimated in the
$99-100/100kg range this week, down by $2-3/100kg from last week.
Trade
Manitoba pork exports increased by 41.7 percent to reach a new record in 1998. Over 65 million kg of pork and pork products valued at $177.5 million were exported by Manitoba plants to 33 countries last year. Some Manitoba pork is also exported from pork processing plants in other provinces.
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