International pork trade is going well. During the first half of 2011 U.S. pork exports were up 15.2 percent and pork imports were down 1.8 percent compared to a year ago. The top four foreign markets for U.S. pork are Japan, Mexico, South Korea and Canada.

During January-June we exported 22.2 percent of U.S. pork production and imported an amount equal to 3.6 percent of production. June U.S. pork exports were up only 2.3 percent compared to a year ago. That is the smallest year-over-year increase since October.

June pork imports were down 16.2 percent compared to a year ago. There is a lot of optimism about the potential that China will buy a lot of U.S. pork in coming months.

Their purchases during June were triple that of 12 months earlier.
Iowa State University calculations estimate the typical Iowa farrow-to-finish operation had a profit of $15.58 per market hog sold during July with a cost of production of $67.34 per cwt. of live weight. For the first seven months of 2011, hog prices are $10 per cwt. live weight above year earlier, but because of higher feed costs profits per head are $10 lower.

The pork cutout value declined this week for the first time in seven weeks. USDA’s Thursday afternoon calculated pork cutout value was $106.93 per cwt., down $2.50 from the previous week. Loins, hams and belly prices were lower this week, butt prices were higher.

The national average negotiated carcass price for direct delivered hogs on the morning report today was $99.75 per cwt., down $2.81 from last Friday. The Friday morning price report for the Western Corn Belt was $98.94 per cwt. The Eastern Corn Belt averaged $98.94 per cwt.

There were not enough negotiated hogs sells in Iowa-Minnesota for a morning price report. Friday’s top live hog price at Peoria was $67 per cwt.

Zumbrota’s top was $71 per cwt. The top for interior Missouri live hogs was $74.25 per cwt., up 75 cents from the previous Friday.

Hog slaughter totaled 2.046 million head this week, up 0.6 percent from last week, but down 1.4 percent compared to the same week last year. Barrow and gilt slaughter is running 1.5 percent under the level implied by the June hogs and pigs report. Barrow and gilt carcass weights for the week ending August 6 averaged 195 pounds, down 1 pound from a week earlier and down 2 pounds from a year ago.

Iowa-Minnesota live weights for barrows and gilts last week averaged 261 pounds, up 0.2 pound from the week before, down 4.6 pounds compared to the same week last year.

This is the 12th consecutive week Iowa-Minnesota weights have been below the year-earlier level. Look for both slaughter weights and daily hog slaughter to increase as we move closer to fall.

Today’s close for the October lean hog futures contract, $88.37 per cwt., was down $1.10 from last Friday. Today, the December lean hog contract settled at $84.87 per cwt., down $1.33 from the previous Friday.
The February lean hog contract settled Friday at $87.55 per cwt., down $1.02 for the week.

The views and opinions expressed in this column are those of the author and not necessarily those of Farm World. Readers with questions or comments for Ron Plain may write to him in care of this publication.