Pork Commentary
Jim Long President – CEO Genesus Inc. info@genesus.com
USDA March 01, 2015 Quarterly Hogs and Pigs Report Hope or Disaster?
March 30, 2015
Disaster?
- March 01, 2015 Market Hog Inventory up 8% over a year ago – plus 4.3 million head!
- Breeding Herd up 2% year over year – plus 131,000
- Pig Crop December – February 28.758 million – up 432,000 compared to December – February last year.
- March 01, 2015 Market Hog Inventory down -124,000 compared to March 01, 2013. Inventories 2015 – 59,953; 2013 – 60,077.
- Breeding Herd 2015 up 2% compared to March 01, 2013 – plus 148,000.
- Pig Crop December – February 28,758; 2013 December – February 28,099 up 659,000.
March 1 Hogs and Pigs Inventory (1,000 head) | |||
2013 | 2014 | 2015 | |
Kept for Breeding | 5834 | 5851 | 5982 |
Market | 60,077 | 55,643 | 59,953 |
Market hogs and pigs by weight group | |||
Under 50 lbs. | 19,426 | 17,336 | 18,959 |
50 – 119 lbs. | 16,650 | 15,487 | 16,509 |
120 – 179 lbs. | 13,059 | 12,538 | 13,290 |
180 lbs and over | 10,942 | 10,281 | 11,195 |
CME Lean Hog Future Close Last Friday | Lean Hog Prices 2013 | |
May | 68.175 | 89 |
June | 75.000 | 98.1 |
July | 75.775 | 98.45 |
August | 76.575 | 96.12 |
- With lower beef supplies and higher beef prices in the US this year compared to 2013 we see this supportive of lean hog prices. e. no more hogs 2015 but certainly less beef.
- 2013 May – August actual lean hog prices were about $45- 50 per head higher than what 2015 May – August futures reflect currently. No more market hogs in inventory than 2013! How can 2015 prices not get significantly stronger?
- We still expect China’s massive liquidation of their breeding herd (over 6 million sows) will lead to huge pork imports in the future. We expect summertime exports 2015 will jump unless liquidation in China continues unabated and if that is the case, China imports will be even greater at a later date. Do the arithmetic. China liquidates 6 million sows – USA adds 131,000. In the USA we think 131,000 is big expansion! China liquidates one million sows in January. A flea on an elephant.
Categorised in: Pork Commentary
This post was written by Genesus