June 30

6/30 - In last week’s quarterly report, the USDA said that U.S. inventories of hogs and pigs on June 1st (at 75.1M head) were up 1.7% from last quarter (Mar 1st) and 0.3% above a year ago. Market-hog numbers were also up slightly (0.4%) from a year ago and the breeding herd was 0.5% lower. The number of pigs per liter (11.75) for the Mar-May quarter are 1.6% above a year earlier. Farrowing intentions for the next half-year (Jun- Nov) are up 0.2%. The report is neutral for prices. Pork supplies are tight. May cold storage stocks were down 6.5% from a year ago. In June’s WASDE, the USDA projected pork output to increase by just 0.7% in 2025. Last week, the Trump Administration announced a trade deal with China that should affect pork demand in a good way since China mostly buys variety meats (such as feet) that help U.S. processors stay profitable. Lean hog futures, at $113.25/cwt, are 26.4% above year ago levels.