USA: Week 23 Pig Market Review 2021

As of June 14, 2021, the USDA reports that the average cost of pork products in the US market has fallen by $3.86. Over the past week, there was an increase in prices only for ribs (+$15.8).

 Slaughter hog futures contracts with 53-54% lean muscle yields for June, July, August and October hit new all-time highs last Friday.

These prices are very, very far from the forecasts of alarmist economists, who last August claimed that summer 2021 futures would be in the $75 US range and there was very little chance of prices exceeding their specified limit in 2021. And now we see a difference exceeding $80 US/head.

The weight of hogs sold for slaughter in Iowa/Minnesota is now below the average for the past five years. Once again, the last Friday auction for pork carcasses in slaughter weight closed at an even higher price - $126.59. The huge price difference between pork and beef provides excellent support for the sustained rise in pork prices.

Despite the unprecedented and record prices for pork carcasses in slaughter weight, exports continue to be high. A week ago, pork sales to Mexico reached 20,780 tons. Simple calculations say that this is equivalent to more than 200,000 market pigs. The Mexican pork market is booming at 47 pesos/kg or $1.07 US/lb live weight ($2.36 US/kg). The United States is expected to continue its massive pork shipments to Mexico, which needs to make up for the massive pork shortage created by the elimination of the country's breeding stock and swine disease outbreaks. Mexican pig producers are also benefiting from high selling prices for their livestock, so US pork exports in this direction will remain strong.

Average price for pigs

Negotiated price

Price in carcass weight

Price in live weight

National based LM_HG203:

-price range ($)

- weighted average. price

-Change from the day before

-volume of sales

107.77-136.00

116.89

-2.37

5566

81.83-96.15

92.94

+2.69

756

WEEKLY WEIGHTED AVERAGE PRICE FOR PIGS