The USDA’s Quarterly Hogs and Pigs report revealed that US hog producers had more hogs on hand March 1 than a year ago, yet a decline in the breeding herd indicates a desire either to cut production or take advantage of greater piglet survival rates.
In the short term, though, the industry will have to wade through more market hogs than they had on March 1, 2023.
TOTAL INVENTORY UP
The US inventory of all hogs and pigs on March 1, was 74.571 million head. This was up 435,000, or 0.59%, from 74.136 million on March 1, 2023, but down 1.345 million, or 1.64%, from 75.816 million on Dec. 1, 2023.
Of that, market hogs totaled 68.556 million head, up 566,000, or 0.83%, from 67.990 million a year earlier but down from 69.818 million on Dec. 1.
Breeding inventory, at 6.016 million head, was down 130,000, or 2.12%, from 6.146 million last year, but up 17,000, or 0.28%, from 5.999 million the previous quarter.
PIG CROP UP
The December 2023-February 2024 pig crop, at 33.148 million head, was up 611,000, or 1.88%, from 32.537 million last year.
Sows farrowing during this period totaled 2.875 million head, down 77,000, or 2.61%, from 2.952 million the previous year. The sows farrowed during this quarter represented 48% of the breeding herd.
The average number of pigs saved per litter was 11.53 for the December 2023-February 2024 period, compared with 11.02 last year.
FARROWING INTENTIONS DOWN
US hog producers intended to have 2.915 million sows farrow during the March-May 2024 quarter, down 26,000, or 0.88%, from the actual farrowings during the same period one year earlier of 2.941 million, and down 52,000, or 1.75%, from 2.967 million in the same period two years earlier.
Intended farrowings for June-August 2024, at 2.987 million sows, are down 53,000, or 1.74%, from 3.040 million the same period one year earlier, and down 95,000, or 3.08%, from 3.082 million the same period two years earlier.
The total number of hogs under contract owned by operations with more than 5,000 head, but raised by contractees, accounted for 52% of the total US hog inventory, up 1% from the previous year.
Of the principal breeding states, Kansas had the largest increase in breeding animals with a 17% increase over last year at 175,000 head. The next largest percentage increase was Pennsylvania with an 11% boost.
States with the largest decrease in breeding animals were Missouri with a 7% decline, North Carolina with a 3% dip, Oklahoma, with a drop of 19% and Texas, which was down 26%.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $188.79 per cwt to $194.99, compared with the previous week’s range of $185.74 to $192.95 per cwt. FOB dressed steers, and heifers went for $294.13 per cwt to $302.18, compared with $290.20 to $299.32.
The USDA choice cutout Friday was down $1.64 per cwt at $306.72 while select was up $2.26 at $303.43. The choice/select spread narrowed to $3.29 from $7.19 with 98 loads of fabricated product and 16 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $340.52 per cwt, and 50% beef was $100.01.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.40 to $1.55 a bushel over the May corn contract, which settled at $4.42 a bushel, up $0.15 1/4.
The CME Feeder Cattle Index for the seven days ended Wednesday was $248.99 per cwt, down $2.24. This compares with Thursday’s Apr contract settlement of $247.12, up $0.25.