January 8

1/8 – In Dec’s quarterly Hogs & Pigs Report, the USDA pegged total U.S. inventories on Dec 1 at 75.0M head, about the same as a year ago and down slightly from the prior quarter. Breeding inventory (6.0M head) was down 3% from both last year and the previous quarter. The market hog inventory at 69.0M head is up 0.3% from a year ago. The Sept-Nov 2023 pig crop was down marginally (0.2%) from last year. Sows farrowing during Sept-Nov 2023 were down 4.0% from a year earlier, however the number of pigs saved per litter jumped by 3.9% in Sept-Nov 2023, offsetting the decline in farrowings. The productivity trend should keep hog prices subdued in 2024. Lean hog futures averaged $80.98/cwt in 2023, with July seasonal highs averaging $100.63. Forward futures for 2024 are trading at $83.02/cwt, with July highs at $93.18. Hog futures closed at $70.00/cwt on Friday (1/5/24) vs $82.53 a year ago.