News

Hogs and pigs down 2%, breeding herd up 2%

 

USDA’s quarterly hogs and pigs report does show a smaller inventory, but is pointing towards re-expansion of the U.S. herd.

All hogs and pigs in the U.S. as of September 1 came out at 65.361 million head, down 2% on the year, but up 6% from the previous quarter following a revision by USDA and above what analysts were expecting. The breeding herd was pegged at 5.920 million head, 2% more than a year ago, and just above the average pre-report estimate. Market hogs were reported at 59.441 million head, a 3% year to year decrease, when analysts were anticipating a nearly 4% decline.

The June to August pig crop was 29.539 million head, down 1% on the year, with sows farrowed during that time period 2.907 million head, up 1%. Pigs saved per litter during June to August averaged 10.16 head, compared to 10.33 a year ago.

September to November farrowing intentions are seen at 2.890 million head and December to February intentions are projected at 2.870 million head, both of which would be 4% larger than the same timeframe last year.

The number of contract hogs on operations of more than 5,000 head made up 46% of U.S. inventory, unchanged on the year.

Overall, the report looks bearish for futures trade.