The USDA December Hogs and Pigs report issued on
December 23rd estimated the total US hog inventory at 75.845 million
head, up 1% from the previous year. Hogs kept for breeding were
reported at 6.004 million head, down 2%, while the market hog inventory
increased by 1% to 69.841 million head. As expected, USDA made
significant downward revisions to the September report. The
September-November pig crop was record-large for this time period at
35.238 million head, 2% larger than a year ago, due to a record-large
pigs per litter forecast of 11.92. The weight breakdown on market hogs
showed a slight decrease (5%) in hogs weighing over 120 pounds, and 1%
increase in hogs weighing under 120 pounds.
Smithfield Foods announced it made a deal with Vision
Ag, LLC, an affiliate of HD3 Farms. The agreement formed a new company
called Vision Ag Hog Production, LLC, with Smithfield holding a
majority interest. The new entity will assume ownership of 28,000 sows
that are currently owned by Smithfield and is committed to supply
600,000 hogs annually for Smithfield's fresh pork operations. HD3 Farms
has been a contract growing partner for Smithfield for more than 20
years, and features 250,000 wean-to-finish spaces on farms in North
Carolina.
Total pork supplies in cold storage at the end of
November were reported at 391.1 million pounds, down 6% from the
previous year. Total beef supplies in the freezer were reported at
440.5 million pounds (96%), while total chicken stocks were quoted at
810.4 million pounds (92%).
Germany reported an outbreak of Foot and Mouth Disease
in a herd of water buffalo in Brandenburg, the first outbreak in 37
years. German meat exports to the EU were likely to continue because
current rules require exports to be stopped only from the region of an
EU country directly suffering from a disease. However, global exports
will likely be impacted, as South Korea and the UK have already
announced bans on German pork. In 2024, Germany emerged as one of the
top suppliers of pork to South Korea, shipping about 37,000 metric tons
of frozen pork through November.
Grains
President-elect Trump nominated Stephen Alexander Vadon
to be deputy secretary of USDA under Secretary nominee Brooke Rollins.
Vadon, 42, was general counsel at USDA during Trump's first term in
office. He recently has served as an Article III Judge on the Court of
International Trade. Vadon has a bachelor's degree from Vanderbilt and
a law degree from Yale. He currently lives in Tennessee.
Seed companies that provided treated corn seed to
AltEn, LLC, a now-defunct ethanol plant at Mead, Nebraska, have reached
an agreement to settle several lawsuits. The seed companies filed
lawsuits in 2022 in an attempt to hold AltEn liable for cleanup and
other costs at the plant site. Those cases will soon be drawing to a
close, according to a status report filed with the court on December
4th, 2024.
Plans for Golden Growers Cooperative and Cargill to
form a long-term joint venture to operate a corn wet milling plant in
North Dakota have been called off. Cargill said it intends to buy out
Golden's 50% interest in Pro Gold, LLC, for about $81 million by late
2026. Cargill has been leasing the Pro Gold corn wet milling plant
since 1997. In 2022, Cargill purchased 50% interest in Pro Gold from
American Crystal Sugar and became 50/50 owners with Golden Growers
Cooperative. The current lease expires on December 31st, 2026.
CME Group announced on January 8th it plans to launch
hard red spring wheat futures and options this spring. They will
compete directly with the Minneapolis Grain Exchange, which is now
owned by Miami International Holdings, Inc.
On the Winter Wheat Seedings report, USDA estimated all
winter wheat acreage at 34.1 million acres versus 33.4 million the year
prior. Hard red winter wheat acreage was reported at 24.0 million, up
from 23.8 million last year. Kansas wheat farmers intend to plant 7.40
million acres, down 200,000 acres from 2024 and down 700,000 acres from
2023. Texas winter wheat acres were forecast at 5.80 million (up
300,000), and Oklahoma acreage was set at 4.25 million (down 100,000).