The recent USDA Hogs and Pigs report brings some unexpected news for the hog industry. The number of hogs and pigs on June 1 is slightly higher than last year, but market hog inventories have gone down a bit. The breeding herd has increased a little since the previous quarter but remains lower than a year ago.
The rise in lighter weight hogs can be partly explained by a larger number of piglets born between March and May compared to the previous year. This improvement is due to the industry successfully tackling health issues like PRRS, which affected the number of piglets saved per litter.
While stocks of frozen pork are recovering, they have not yet reached the levels before the Covid-19 pandemic. The USDA predicts that each person in the United States will consume around 50 pounds of pork in 2023, decreasing slightly to 49.9 pounds in 2024.
Regarding exports, the United States shipped approximately 581 million pounds of pork in April, which is about 10% more than in April 2022. The USDA estimates that pork exports in the second quarter of 2023 will reach 1.73 billion pounds, showing a 7.5% increase compared to the previous year. The report covers the latest USDA Hogs and Pigs data, along with other factors influencing the hog market. It concludes by providing an overview of the hog price outlook for the upcoming months.
Important Summary of the report:
- The number of hogs and pigs on June 1 is slightly higher than last year, but market hog inventories have slightly decreased.
- The breeding herd has seen a small increase since the previous quarter but remains lower than a year ago.
- The rise in lighter weight hogs can be partly attributed to a larger number of piglets born between March and May.
- Frozen pork stocks are recovering but have not yet reached pre-Covid-19 levels.
- Each person in the United States is predicted to consume around 50 pounds of pork in 2023, decreasing slightly to 49.9 pounds in 2024.
- In April, the United States exported approximately 581 million pounds of pork, which is about 10% more than in April 2022.
- Pork exports in the second quarter of 2023 are estimated to reach 1.73 billion pounds, showing a 7.5% increase compared to the previous year.
Hog prices are expected to rise in the second and third quarters, with a decline anticipated in the first and fourth quarters. However, prices may be influenced by factors such as production levels and export demand, which could potentially lead to lower prices.
Photo Credit: istock-srdjan-stepic
Categories: Illinois, Livestock, Hogs