NHF_WEEKLY PREVIEW_ A Penton Media Property April 24, 2009 If you want to view this on the web go to: http://enews.penton.com/enews/nationalhogfarmer/v/388 MARKET PREVIEW --Lagging Loin Prices It has been a tough week for pork cutout values. After showing some signs of expected seasonal strength last week, the cutout value fell from Monday through Wednesday, before gaining $0.94/cwt. on Thursday. That still puts it at $2.13 below last week and over $12 lower than last year. Altin Kalo of Steiner Consulting Group, writing in Thursday's Daily Livestock Report from Chicago Mercantile (CME) Group, pointed to lagging loin prices as one of the key reasons for the continued weakness in the pork cutout value. Figures 1 and 2 show prices of 1/4-in. trim, 21 lb. and down loins on a long-term and year-on-year basis, respectively, and they do indeed suggest that loin prices are low on a historical basis. To view the full article go to: http://nationalhogfarmer.com/marketpreview/lagging-pork-loin-prices/ FINANCIAL PREVIEW --Prices Improving, but Red Ink Persists This week, we have seen a seasonal rally in cash hog prices, rising to over $60/carcass cwt. Still, in order to be in the black, prices need to increase to $70/carcass cwt. Even with improved prices, the equity drain is continuing for the pork sector. The next 30-60 days are crucial for prices to rally to a level where the industry can return to profitability. Many producers are tired. Working capital is getting tighter by the day. Hopefully, the much-needed higher prices will get here sooner rather than later. Packers and Retailers Meet -- I was fortunate to be invited to a meeting, recently, that included pork packers and major retailers. I am grateful to the National Pork Producers Council and the National Pork Board, sponsors of the meeting, who asked me to speak to the group about the economics of the swine industry. My presentation stressed that our breakeven price to raise hogs to market weight has gone up over 30% -- returning to 2007 levels. Cost of production averaged about $160/head in 2008, while revenue came in at about $138/head. Price received was not the problem. What it took to raise our product was, and those costs are now higher than the industry has grown used to. To view the full article go to: http://nationalhogfarmer.com/northamericanpreview/hog-prices-improving-but-red-ink-persists LEGISLATIVE PREVIEW --Climate Change Debate Begins The House Energy and Commerce Subcommittee on energy and environment began hearings this week to draft an energy/climate-change bill to be introduced by Congressmen Henry Waxman (D-CA), chairman of the House Energy and Commerce Committee and Ed Markey (D-MA). The bill's goal is to reduce global warming by reducing greenhouse gas emissions to 83% below 2005 levels by 2050, through a cap-and-trade system. The bill also establishes a renewable energy mandate that requires 25% of U.S. power be generated from renewable sources by 2025. Chairman Waxman's goal is to have the bill pass the committee vote by Memorial Day. Corn Belt Could Face Loss from Global Warming -- A study by Environment America estimates that global warming could cost the U.S. economy $1.4 billion/year in lost corn production. The study was based on government and university data that projects warming temperatures will reduce yields of the nation's corn crop by 3% in the Midwest and South, compared to projected yields without further global warming. To view the full article go to: http://nationalhogfarmer.com/northamericanpreview/climage-change-global-warming-debate-begins NEWS FLASH --Scientists Identify New Type Of Swine Flu in Humans Seven cases of a unique type of swine flu in humans  have U.S. health officials concerned whether it is linked to a strain responsible for more than 130 cases of severe respiratory illness in Mexico. The five individuals in California and two in Texas have all recovered, and testing indicates that antiviral medications seem to work against the virus. But federal Centers for Disease Control and Prevention (http://www.cdc.gov) (CDC) officials worry because none of the seven people were in contact with pigs, the normal route of contracting swine flu, and only a few were in contact with each other. To view the full article go to: http://nationalhogfarmer.com/health-diseases/0423-human-swine-flu PORK INDUSTRY CALENDAR May 17-20, 2009: Alltech International Animal Health & Nutrition Symposium, Lexington Convention Center, Lexington, KY; contact: symposium@alltech.com (mailto:symposium@alltech.com). May 27 - 29, 2009: PORK 101; Texas A&M University, College Station, Texas Registration Contact: AMSA member services at 800-517-2672 or information@meatscience.org (mailto:information@meatscience.org). Web Site: http://www.pork101.org (http://www.pork101.org/). To view the full article go to: http://nationalhogfarmer.com/calendar/ M2P2, LLC has an opening for a full-time Territory Manager. This person would be responsible for the overseeing of 45,000 spaces in Iowa. Ideal candidates must have the following qualifications: *Understanding of all aspects of the swine industry. *Knowledge of project management discipline, (especially priority setting and organization) *Established skills in identifying and developing strategies to address any process improvement opportunities. *Proven conflict resolution skills. *Strong written and verbal communication skills. *Expected to take an active role in companies all ready established bio-security and safety programs. Salary range $60,000 to $100,000 based on experience and a benefit package that includes medical, disability, life insurance, 401k, and PTO. Interested candidates please mail your resume and cover letter to M2P2, attn: Tracy Rogers, 1615 Golden Aspen Drive, Suite 104, Ames, Iowa 50010 or email resume and cover letter to trogers@m2p2.com. (mailto:trogers@m2p2.com) M2P2, LLC is a progressive pork production company and employer of choice in the industry. Formed in 2003, M2P2 merges expertise in all phases of hog production, from birth to market, into one company. Today M2P2, LLC operates in six states throughout the U.S. and is leading the way in the pork production industry. M2P2, LLC is an equal opportunity employer. ABOUT THIS NEWSLETTER You are subscribed to this newsletter as #email# To subscribe to this newsletter go to: http://subscribe.nationalhogfarmer.com/?tc=NLSUB To unsubscribe from this newsletter go to: http://subscribe.nationalhogfarmer.com/?tc=NLSUB&cid=#message_id#&lid=#list_id#&email=#email# Send Comments & Questions Dale Miller, Editor, National Hog Farmer, mailto:dale.miller@penton.com Penton Media | 249 W. 17th Street | New York, NY 10011 Copyright 2009, Penton Media. All rights reserved. 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