The USDA’s weekly pork cutout value is running at a higher level than the same week last year and the 2020-2024 average, pushing feeder pig prices higher.
Weekly prices for 40-pound feeder pigs are rising faster than is average and already are higher than last year’s peak. They even started the year at a higher level than the five-year average.
PRICES RISING SEASONALLY
The average trend is to push the pork cutout unevenly higher to an initial peak in mid-May and an annual peak the first week of August.
However, last year, the pork cutout made an initial peak the third week of February at $100.17 pounds per cwt before declining as the 2020-2024 average caught up and surpassed it the first week of May just as last year’s value was turning higher again.
The weekly cutout passed above the average the first week of June and remained elevated from the average for the rest of the year, setting an annual peak of $120.72 per cwt the last week of June.
There is no reason to think the weekly pork cutout won’t follow the general direction of the five-year average this year, a market analyst said. A mic-year rise correlates to a mid-year decline in hog slaughter.
FEEDER PIG PRICES JUMP
Prices for 40-pound feeder pigs jumped in the opening weeks of 2026. The USDA listed the price at $103.92 per head in the first week, compared with $95.33 in the same week a year ago and the 2020-2024 average of $67.15. Last week’s price was $125.11 a head.
Contrast those opening-week prices to last week when the price was listed at $125.11 a head, versus $107.00 a year ago and the average of $75.02 a head.
And, the 2025 high point in 40-pound feeder pig prices last year was $115.58 per head the last week of February. Already, feeder pig prices are higher than last year’s peak.
The five-year average has the annual price peak for 40-pound feeder pigs at $89.66 the third week of March.
CORN PRICES SUPPORT PIG PRICES
Feeder pig prices have been helped further by the price of corn. USDA data compiled by the Livestock Marketing Information Center in Denver showed that last week’s price for a bushel of corn at Omaha, Neb., was $4.19, compared with a 40-pound feeder pig at $125.11 per cwt.
That is somewhat meaningless until a comparison is made to the price difference in the last week of December – feeder pigs at $93.07 per cwt versus corn at $4.35.
The scramble for feeder pigs left the weekly price at the highest level since 2020 with the next highest peak at $122.28 the last week of February 2022.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $236.32 per cwt to $242.02, compared with last week’s range of $233.00 to $240.00 per cwt. FOB dressed steers and heifers went for $369.10 per cwt to $380.59, compared with $365.91 to $371.92.
The USDA choice cutout Thursday was down $0.77 per cwt at $367.25 while select was down $1.72 at $360.37. The choice/select spread widened to $6.88 from $5.93 with 90 loads of fabricated product and 25 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $416.31 per cwt, and 50% beef was $154.13.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $0.98 to $1.12 a bushel over the Mar corn contract, which settled at $4.35, up $0.05 1/2.
The CME Feeder Cattle Index for the seven days ended Wednesday was $375.16 per cwt, down $0.59. This compares with Thursday’s Mar contract settlement of $364.07, down $6.00.