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By Ron Plain and Scott Brown, University of Missouri Lately, there have been a few restaurant chains saying they willrequire, at some time in the future, all of their pork to come fromfarms that use open pen gestation facilities. At the request ofthe National Pork Producers Council, I have just completed a surveyof 70 large hog firms which have 3.6 million sows (roughly 62.6% ofall U.S sows). The results indicate that 17% of their sows are currently housed inopen pen gestation once confirmed pregnant. The group plans toincrease this to 23% over the next two years. So, there are hogsavailable from open pen gestation facilities. The next question ishow to track their pork all the way to retail. USDA"s Thursday afternoon calculated cutout value was$83.86/cwt, up $1.91 from the previous Thursday, but $6.85 lowerthan on this week last year. The negotiated hog carcass price thismorning is 104.4% of the pork cutout value. Over the last 10years, the national base carcass hog price averaged 91.3% of thepork cutout value. Thus far this year, the average is close to100%. There have been 11 weeks thus far this year in which thebase hog price has been above the cutout value. Why so high? First, there is a lot of volatility in the relationship of hogprices to cutout value. The lowest annual average in the lastdecade was 2002 at 84.5% and the highest average was 2005 at 95.5%. Second, the byproduct has been adding to hog value lately. The ten-year average is byproduct equals 11.9% of hog value. Thisyear"s average is 13.6%. The high hog-price-to-cutout ratiois causing problems for packers. The packer gross margin (cutoutvalue plus byproduct value minus hog price) averaged $23/hog for2002-2011. Thus far this year it has averaged $17/head. Look forvery low Saturday slaughter until packer margins improve. The national average negotiated carcass price for direct deliveredhogs on the morning report today was $87.51/cwt, up $6.15 from lastFriday. The eastern corn belt averaged $87.56/cwt this morning. The western corn belt had an average of $86.32/cwt on the morningreport. There were not enough early sales in Iowa-Minnesota for aprice quote. Both Peoria and Zumbrota had a live top today of$59/cwt. The top for interior Missouri live hogs Friday was$63.75/cwt, up $5.25 from the previous Friday. Hog slaughter totaled 2.007 million head this week, up 9.7% fromthe week before (which was light due to the Memorial Day holidaylast Monday) and up 0.2% compared to the same week last year. Barrow and gilt carcass weights for the week ending May 26 averaged204 pounds, down 1 pound from the week before, but up 2 pounds froma year ago. The average barrow and gilt live weight in Iowa-Minnesota last weekwas 274.9 pounds, up 0.6 pounds from a week earlier, up 4.3 poundsfrom a year ago, and above a year earlier for the 28th consecutiveweek. Friday"s close for the June lean hog futures contractwas $93.02/cwt, up $2.30 from the previous Friday. The July hogfutures contract settled at $92.92/cwt, up $1.35 for the week.August ended the week at $92.45. October settled at $82.95/cwt. See Comments. We are high quality suppliers, our products such as Environmentally Friendly Refrigerant Manufacturer , Mixed Refrigerant for oversee buyer. To know more, please visits R410a Refrigerant Gas.
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