Hogs
Hog prices continue to work higher. Cash hog prices were $1.00/cwt higher last week making it the tenth consecutive week of upward movement. The pork cutout was down slightly last week, averaging $100.55 and started this week moving lower. Belly primals were down sharply to start the week.
It would be typical for this time of year to see packer margins tighten. It will likely take increased domestic demand heading into grilling season to keep hog prices steady or higher. Packers are continuing to move hogs through the system, keeping supplies current.
Last week’s harvest estimate of 2.487 million was 2,000 more than the week prior and 34,000 more than the same week a year ago.
Lamb
Traditional lambs were $1.00/cwt higher last week with 60-to-90-pound market lambs $10.00 to $50.00 lower. Market lamb prices have been increasing, outpacing both last year and the five-year average. If seasonal trends continue, we expect prices to move lower in early summer.
The flock is smaller, however, so market lamb supplies may be tighter than in recent years. Last week’s estimated harvest of 36,000 head was equal to the prior week and 3,000 below last year.
The lamb cutout value was higher, ending last week at $472.72 compared to $469.90 the previous Friday.
Shorn lambs brought $185 to $225/cwt with reports of some selling higher.