Market News & Headlines >> USDA Hogs and Pigs Report Largely Neutral

Friday afternoon’s quarterly USDA Hogs and Pigs report was largely neutral relative to trade expectations, confirming a record large Sept. 1 hog herd and modest breeding herd expansion.

USDA pegged all hogs and pigs as of Sept. 1 at 68.4 million head or 103.7% of a year earlier compared with trade expectations that averaged 103.5% in a range from 103.0%-104.2%, according to a Reuters News Service survey. The all hogs and pigs total was 0.3% above the previous record high for Sept. 1 set in 2008.

The breeding herd grew more than the trade expected, but the increase was still modest. The supply of hogs kept for breeding was pegged by USDA at 101.1% of a year earlier, slightly above the high end of trade estimates that averaged 100.2% in a range from 99.0%-101.0%. The Sept. 1 breeding herd of 5.99 million  head was the largest since 2008.

The Sept. 1 market hog inventory was reported by USDA at 62.41 million head or 103.9% of a year earlier, closely in line with trade estimates that averaged 103.8%. The market hog inventory was record high for the date, 0.3% above the previous high set in 2012. The supply of hogs weighing 120-179 pounds was 108% of a year earlier, matching the high end of trade expectations and confirming hog supplies will remain large in the near-term.

USDA pegged the June-August pig crop at 100.6% of a year earlier very near the average of trade estimates of at 100.5%. The number of pigs per litter was 102.3% of a year earlier versus trade estimates averaging 102.4%.  USDA put September-November farrowing intentions at 97.5% of a year earlier against trade estimates averaging 97.4% and pegged December-February intentions at 99.3%, a bit above the average trade forecast of 98.7%.