Ruminant MBM prices were up this afternoon on tight, nearby supplies and some short covering. Export demand continues to be strong for both ruminant and porcine material. Typically, supply levels fall in the summer season as hog weights and head counts reduce. Since 2017, slaughter levels from June to August ranged from 2200-2500 head, with 2020 witnessing higher than average summer numbers.

Figure 1.

Year-to-date, hog slaughter is currently showing 57.4 million head, around a 3.3 percent increase over both 2019 and 2020. Despite the strong start to the year, there is risk for lower numbers in the coming months.  Reports of limited offerings on live hogs persist from multiple producers, due to modest increases of porcine reproductive and respiratory syndrome (PRRS) incidences and…