U.S. sow cull slow
The United States Department of Agriculture hogs and pigs report June 26 showed that despite big losses, American hog producers have not yet undertaken a major cull.
“The liquidation is just not fast enough,” Dennis Smith, livestock broker with Archer Financial told Reuters News Service.
USDA put the U.S. hog herd on June 1 at 66.079 million head, 98 percent of last year.
Although the herd was down from last year and right on the average estimate, it was up one percent from the hog herd number on March 1.
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The breeding herd was put at 5.967 million head, 97 percent of last year, and down slightly from the March report. But the market hog supply at 60.112 million head, 98 percent of last year, was also up one percent from March.
“This report is bearish. There is not one number here that would make anybody want to buy the market,” said Jim Clarkson, livestock analyst with A&A Trading Inc.
“We haven’t done anything to pare down the numbers to get us out of the funk that we are in.”
The pigs per litter number at 102 percent of last year was also viewed as bearish because it lessens any benefits from the smaller breeding herd, analysts added.
Hog prices steady
Pork sales leading to the July 4 U.S. holiday were disappointing.
Hog prices continue below the break-even basis and producers are losing money.
Iowa-southern Minnesota cash hogs were $43 US per hundredweight June 26, down slightly from $43.50 June 19.
The U.S. pork carcass cut-out value fell to $53.44 on June 24, the lowest in six years, but recovered to $55.28 by June 26. However, that was still lower than the $56.38 posted June 19.
The low pork prices had packers operating at a loss.
U.S. federal slaughter to June 27 was estimated at 2.032 million, down from 2.062 million the previous week.
Compared to the same week last year, slaughter was down five percent. The average dressed carcass weight was 203 pounds, up five lb. from last year at the same time.
Bison steady
The Canadian Bison Association said markets were mostly steady.
Grade A carcasses from youthful bulls in the desirable weight range in Canada were at $2.40-$2.65 per lb. hot hanging weight. Heifers were $2.30-$2.45 per lb.
The cull cow and bull average was steady at $1.30 per lb. but there was some upward price pressure.
Weight, quality, age and delivery location affect final price.
Good sheep, lambs steady
Ontario Stockyards reported 1,363 sheep and lambs and 55 goats traded June 22. Well fed lambs sold $10 to $20 per cwt. higher.
Other lambs saw good trade at stronger prices. Sheep were strong. Goats held firm.
Beaver Hill Auction in Tofield, Alta., reported 1,362 sheep and lambs and 254 goats traded June 22. With the larger volume, prices fell $10 to $30 per cwt. on lambs but goats were steady. Grain finished lambs fetched the best prices.
Lambs lighter than 70 lb. were $130-$154 per cwt. Lambs 75 to 85 lb. were $130-$148, 86 to 105 lb. were $126-$147, and those heavier than 105 lb. were $134-$147.
Rams were $32-$55 per cwt. Ewe culls were $35-$52.
Good kid goats were $150-$225. Nannies were $70-$102 per cwt. and mature billies were $100-$170.
