July 1

7/1 - In last week’s quarterly Hogs and Pigs Report, the USDA said the U.S. hog inventory, at 74.49M head, is up 1.3% from a year ago. Producers appear to be trying to reduce herd numbers. Hogs kept for breeding were down 3.2% from last year and farrowing intentions are down 2.5% for Jun-Aug and down 0.6% for Sep-Nov. Pigs per litter are up 1.8% - and that should help offset declines in the breeding herd and farrowings. In June’s WASDE, the USDA called for a 2.9% increase in pork output in 2024. Lean hog futures averaged $86.06/cwt for the first half of 2024 – up 6.5% from $80.83 a year ago. Second half 2024 futures are averaging $81.16 – on par with $81.11/cwt for the 2nd half of 2023. In the USDA’s quarterly grain reports, both corn stocks and corn acreage came in well above pre-report estimates. That was bearish for corn futures, which closed at a 4-year low of $3.97 per bushel on Friday (6/28).