Market News & Headlines >> Hogs and Pigs Report has Little Market Impact

The lean hog futures market on Monday shook off what appeared to be a neutral to slightly negative quarterly Hogs and Pigs report from USDA and moved higher on apparent support from strong wholesale pork prices.

The USDA report released last Thursday pegged the total U.S. hog herd and the March 1 inventory of market hogs at the high end of trade expectations, while indicating a smaller-than-expected drop in the size of the sow herd and confirming continued strong gains in breeding efficiency.

USDA pegged all hogs and pigs as of March 1 at 74.571 million head or 100.6% of a year earlier compared with pre-report trade estimates that averaged 100.1% of  a year earlier in a range from 98.8%-100.9%.

The number of sows for kept for breeding purposes was put at 6.016 million head or 97.9% of a year earlier, compared with trade estimates that averaged 97.1% in a range from 95.2%-99.0%.  The March 1 market hog inventory was estimated at 68.556 million head or 100.8% of a year earlier compared with trade estimates that averaged 100.4% of a year earlier in a range from 99.0%-101.3%.

The March 1 inventory of market hogs weighing 180 pounds or more came in at 99.4% of a year earlier, below the average of trade estimates at 99.9%, while the supply of market hogs weighing 120-179 pounds was 100.3% versus an average trade estimate of 99.6%. Supplies of hogs weighing 50-119 pounds and less than 50 pounds both came in at 101.5% of year earlier compared with trade estimates averaging 100.5% and 101.0% respectively. 

The December-February pig crop came in at 33.148 million head or 101.6% of a year earlier slightly above the average of trade estimates, which was 100.4% as USDA pegged the number of pigs per litter at 11.53 or 104.6% of a year earlier compared with trade estimates that averaged 103.3%, more than offsetting a drop in December-February sow farrowings. Quarterly farrowings were estimated by USDA at 2.875 million head or 97.4% of a year earlier versus trade estimates that averaged 98.1%.

USDA reported March-May farrowing intentions at 99.1% of a year earlier compared with trade estimates that averaged 98.0% and estimated June-August farrowing intentions at 98.3% of a year earlier compared with trade expectations that averaged 98.0%.