There were no big surprises in this afternoon's USDA Hogs and Pigs report and the minor changes favour strengthening prices. Analysts suggest breeding herd liquidation has been underway over the past quarter and will continue for several months.
All Hogs totaled 62.2 million head. This was two per cent above December 1997 but two per cent below September 1, 1998.Kept for Breeding were 6.67 million head. This was down four per cent from Dec. 1, 1997 and down three per cent from September 1, 1998.
Market hog inventory was 55.5 million head which was two per cent above last year but two per cent below last quarter.
Farrowing intentions for Dec. 1998 - February 1999 are reported as 2.89 million sows which is one per cent below actual farrowings in the same same period in 1998 but eight per cent above the same period in 1997.
Farrowing intentions for March - May 1999 at 2.8 million sows are seven per cent below actual farrowings in the same period in 1998 and one per cent below 1997.
The Number of farms with pigs totaled 114,390 which is down six per cent from last year and 20 per cent below 1996. Operations with 2,000 or more hogs on hand made up six per cent of the operations and held 64 per cent of the inventory.
back to Market Watch Index