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United States Department of AgricultureAgricultural Marketing ServiceThrough comprehensive market surveys, case studies, and research partnerships, AMS provides insight into direct-marketing trends and emerging food system models.A User’s Guide to USDA’s LMR Hog Price ReportsHog Price ReportingUnder LMRLivestock Mandatory Reporting(LMR) provides all marketparticipants with the same openand transparent data forslaughter cattle, swine, sheep,boxed beef, lamb, andwholesale pork. LMRencourages competition in themarketplace byvastly improving price andsupply information, bringingtransparency, breadth, anddepth to market reporting.Federally inspected packingplants that annually process anaverage of 100,000 barrows andgilts or companies that process200,000 sows and boars arerequired to report information toAMS. LMR swine reports arebased on two data sets providedby packers that meet reportingthresholds – purchase data andslaughter data.Purchase data represents hogsthat are purchased during aspecified time period. Datainclude base prices for carcasspurchased hogs, and net pricesand hog weights for any live hogspurchased.Slaughter data represents hogsthat are harvested during aspecified time period. Datainclude base prices, net prices,carcass weights, and carcasscharacteristics. Only reportsHG201, HG213, HG214, andHG215 are based on slaughterdata. All others reports arebased on purchase data.Currently, 21 packers reportswine information under LMR,accounting for 97 percent ofswine sales and production inthe United States. AMS MarketReporters review between7,000-11,000 swine datarecords on a daily basis. Thisdata is used to publish 20 dailyand 2 weekly swine reports. Alisting of the reports can befound in the green box below.Key LMR DefinitionsAn important aspect of any lawor administrative rule is thedefinitions of various terms.Some of the key terms anddefinitions for LMR for hogs are:PRICES: Base price: The price paid forlivestock, delivered at thepacking plant, beforeapplication of any premiumsor discounts, expressed indollars per hundred poundsof hot carcass weight. Formula price: Aprice determined by amathematical formula underwhich the price established fora specified market serves asthe basis for the formula. Net price: Total amount paid bya packer to a producerAMS publishes 20 daily and 2 weekly (a total of 102) swine reports each week. The reports cover time periods, regions,and activities. The reports, which can be found at www.ams.usda.gov/market-news/swine-direct-reports, are:The morning reports represent hogs purchased between 1:30pm yesterday and 9:30am today:· Daily Direct Hog–Morning (LM HG 202)· IA-MN Daily Direct Hog–Morning (LM HG 205)· Eastern Cornbelt Daily Direct Hog–Morning (LM HG209)· Western Cornbelt Daily Direct Hog–Morning (LM HG 211)The afternoon reports represent hogs purchased between 1:30pm yesterday and 1:30pm today:· Daily Direct Hog–Afternoon (LM HG203)· IA-MN Daily Direct Hog–Afternoon (LM HG 206)· Eastern Cornbelt Daily Direct Hog–Afternoon (LM HG210)· Western Cornbelt Daily Direct Hog–Afternoon (LM HG 212)The slaughter and prior day purchase reports represent hogs purchased between 12am yesterday to 12am today:· Daily Direct Hog Prior Day–Purchased Swine (LM HG200)· Eastern Cornbelt Daily Direct Prior Day Sow & Boar–· Daily Direct Prior Day Sow and Boar–Purchased SwinePurchased Swine (LM HG232)(LM HG230)· IA-MN Daily Direct Prior Day Hog–Purchased Swine· Daily Direct Hog Prior Day Sow Price Comparison (NW LS832)(LM HG204)· Daily Direct Hog Prior Day Slaughtered Swine (LM HG201)· IA-MN Daily Direct Prior Day Sow & Boar–Purchased· Daily Lean Hog Carcass Slaughter Cost (LM HG213)Swine (LM HG231)· Daily Direct Hog Prior Day Net Price Distribution (LM HG215)· Western Cornbelt Daily Direct Prior Day Hog–Purchased· Weekly National Direct Swine Report (LM HG214)Swine (LM HG208)· Direct Swine Non-Carcass (LM HG250)· Western Cornbelt Daily Direct Prior Day Sow & Boar–· Eastern Cornbelt Daily Direct Prior Day Hog–PurchasedPurchased Swine (LM HG233)Swine (LM HG207)USDA is an equal opportunity provider, employer, and lender.12018 United States Department of Agriculture. Agricultural Marketing Service.
MARKETUnited States Department of Agriculture(including all premiums, lessall discounts) per hundredpounds of carcass weight ofswine delivered at the plant.Total amount paid shall includeany sum deducted from theprice (per hundredweight) paidto a producer that reflects therepayment of a balance owedby the producer to the packeror the accumulation of abalance to later be repaid bythe packer to the producer. Thetotal amount paid shall excludeany sum earlier paid to aproducer that must be repaid tothe packer.or options contract for swine,pork, or a pork product.of 200,000 head of sows,boars, or combination thereofper year during theimmediately preceding 5calendar years. Additionally,in the case of a swineprocessing plant or personthat did not slaughter swineduring the immediatelypreceding 5 calendar years, itshall be considered a packerif the Secretary determinesthe processing plant orperson should be considereda packer after considering itscapacity.Agricultural MarketingService Other marketformulaPURCHASE TYPE: Negotiated purchase:A cash or spot marketpurchase by a packer oflivestock from a producerunder which the base pricefor the livestock is determinedby seller-buyer interactionand agreement on a deliveryday. The livestock must bescheduled for delivery to thepacker not more than 14 daysafter the date on which thelivestock are committed to thepacker. Negotiated formula purchase:A swine or pork marketformula purchase underwhich the formula isdetermined by negotiation ona lot-by-lot basis and theswine are scheduled fordelivery to the packer notlater than 14 days after thedate on which the formula isnegotiated and swine arecommitted to the packer. Swine or pork market formulapurchase: A purchase ofswine by a packer in whichthe pricing mechanism is aformula price based on amarket for swine, pork, or apork product, other than afuturespurchase: A purchase ofswine by a packer in whichthe pricing mechanism is aformula price based on anymarket other than the marketfor swine, pork, or a porkproduct. This includes aformula purchase in a casewhich the price formulais based on one or morefutures or options contracts. Other purchase arrangement: Apurchase of swine by a packerthat is not a negotiatedpurchase, swine or pork marketformula purchase, negotiatedformula purchase, or othermarket formula purchase; anddoes not involve packer-ownedswine. Affiliate: With respect to apacker, means: (1) A person thatdirectly or indirectly owns,controls, or holds with power tovote, 5 percent or more of theoutstanding voting securities ofthe packer; (2) A person5 percent or more of whoseoutstanding voting securities aredirectly or indirectly owned,controlled, or held with power tovote, by the packer; and(3) A person that directlyor indirectly controls, or iscontrolled by or under commoncontrol with, the packer.ENTITIES/SELLERS: Person: Any individual, groupof individuals, partnership,corporation, association, orother entity. Packer: Any person engagedin the business of buyingswine in commerce forpurposes of slaughter, ofmanufacturing or preparingmeats or meat food productsfrom swine for sale orshipment in commerce, or ofmarketing meats or meat foodproducts from swine in anunmanufactured form actingas a wholesale broker, dealer,or distributor in commerce.For any calendar year, theterm “packer” includes only afederally inspected swineprocessing plant thatslaughtered an average of100,000 head of swine peryear during the immediatelypreceding 5 calendar yearsand a person (see definitionabove) that slaughtered anaverageUSDA is an equal opportunity provider, employer, and lender. Packer-owned swine: Swinethat a packer(including a subsidiaryor affiliate of the packer) ownsfor at least 14days immediately beforeslaughter. Packer-sold swine: Swine thatare ownedby a packer (including asubsidiary or affiliate of thepacker) for more than 14 daysimmediately before sale forslaughter; and sold forslaughter to another packer.OTHERS: Lot: When used in referenceto livestock, the term meansa group of one or more2101INFORMATIONlivestock that is identified forthe purpose of a singletransaction between a buyerand a seller. Base market hog: A barrow orgilt for which no discounts aresubtracted from and nopremiums are added to thebase price. Noncarcassmerit premium:Increase in the base price ofthe swine offered by anindividual packer or packingplant, based on any factorother than the characteristicsof the carcass, if the actualamount of the premium isknown before the sale anddelivery of the swine.LMR Report ContentFigures 1 and 2 show examples,along with helpful explanations,of the Daily Direct Hog Prior DayPurchased Swine report and theDaily Direct Hog Prior DaySlaughtered Swine report.
MARKET101INFORMATIONUnited States Department of AgricultureFIGURE 1: EXAMPLE OF LM-HG200, DAILY DIRECT HOG PRIOR DAY-PURCHASED SWINEAgricultural MarketingServiceLM HG200**SAMPLE REPORT**Date report is published/released.Hogs in this report are priced the priorbusiness day from midnight to midnight.Actual number of carcass and live hogspriced the prior business day, a weekago, and a year ago for each ProducerSold purchase type and combinedPacker Sold.Purchase types.Swine owned by a packer for more than14 days before sale for slaughter; andsold for slaughter to another packer.Carcass Priced Hogs: The volume andweighted average base carcass pricefor each Producer Sold purchase type.Carcass Priced Hogs: The combinedtotal volume and weighted average pricefor all Packer Sold purchase types.Carcass Priced Hogs: Producer andpacker sold negotiated hogs.Commentary written by reporter.Compares the price trend on today’sreport to the previous prior day report.Carcass Priced Hogs: price beforepremiums/discounts are added orsubtracted.Carcass Priced Hogs: Producer and packer sold negotiated formula priced hogs.Comparison of today’s weighted averageprice to that of the prior business day’sCarcass Priced Hogs report.Combination of producer sold andpacker sold negotiated and negotiatedformula purchase carcass priced hogs.Des Moines, IowaMon, Feb 06, 2017USDA Market NewsNATIONAL DAILY DIRECT PRIOR DAY HOG REPORTPLANT DELIVERED PURCHASE DATA FOR Friday, February 3, 2017CURRENT VOLUME BY PURCHASE TYPEBARROWS & GILTS LIVE AND CARCASS BASISProducer SoldNegotiatedOther Market FormulaSwine or Pork Market FormulaOther Purchase ArrangementNegotiated FormulaPacker Sold (all purchase types)Actual Prior Day8,14538,912192,882119,3293,05917,055Actual Week Ago7,91530,282216,50498,1962,64217,978Actual Year Ago10,65364,951245,38755,837027,834NEGOTIATED OTHER MARKETSWINE OR PORK OTHER PURCHASE NEGOTIATED TOTALS/FORMULA MARKET FORMULAARRGMENTFORMULA WTD AVGBarrows & Gilts (carcass basis):Producer Sold6,03037,406181,795115,903984 342,118Head Count66.8865.7569.1070.6469.1969.22Base PricePacker Sold16,670Head Count69.73Base PriceNEGOTIATED PURCHASE (Including Packer Sold)Barrows & Gilts (carcass basis): 6,030Compared to the prior day, on a plant by plant basis, weighted average base prices were 1.17 lower to 2.77 higher, markettrend not well established. Slow market activity with light demand.Compared to Prior Day’s closing weighted average (LM HG200), 0.47 lowerBase Price Rng 62.00 - 69.25, Wtd Avg 66.88, 5 Day Rolling Avg 65.88NEGOTIATED FORMULA PURCHASE (Including Packer Sold)Barrows & Gilts (carcass basis): 984Compared to Prior Day’s closing weighted average (LM HG200), 0.23 higherBase Price Rng 65.91 - 71.71, Wtd Avg 66.88COMBINED NEGOTIATED & NEGOTIATED FORMULA PURCHASES (Including Packer Sold)Barrows & Gilts (carcass basis): 7,014Compared to Prior Day’s closing weighted average (LM HG200), 0.32 higherBase Price Rng 62.00 - 71.71, Wtd Avg 66.02USDA is an equal opportunity provider, employer, and lender.3
MARKETUnited States Department of AgricultureNATIONAL DAILY DIRECT NEGOTIATED HOG PURCHASE MATRIXREPRESENTING INDIVIDUAL PACKER CARCASS MERIT BUYING PROGRAMSbased on both Fat and Muscle Measurements for a 200 lb Carcass BasisCarcass-Priced Hog prices frompackers whose buying programsinclude both loin eye and back fat areincluded in this section.Agricultural Marketing ServiceLoin area and loin depth in inches.Back fat depth in inches.Lowest and highest possible carcassprice for each backfat-loin area/depthcombination using the current report’snegotiated carcass price and a 200 lbs.carcass hog.Carcass-Priced Hogs: the lowest andhighest price adjustment for each weightacross all packers’ buying programs.BF0.40.50.60.70.80.91.01.11.21.44.0/ .35Carcass-Priced Hogs: Producer andpacker sold swine or pork marketformula hogs.Live-Priced Hogs: Producer and packersold negotiated purchase hogs.Live-Priced Hogs: Producer and packersold negotiated formula purchase hogs.Live-Priced Hogs: Producer andpacker sold combined negotiated andnegotiated formula purchase 59.50LOIN AREA/DEPTH (INCHES)5.0/ 1.76.0/ .007.0/ .008.0/ .00CARCASS WEIGHT DIFFERENTIALS175# -3.00 2.25205# -5.25 4.50185# 0.00 4.00215# -5.25 4.25195# -1.31 4.50225# -5.25 1.00145# -30.00 -6.56155# -30.00 0.00165# -15.00 0.00Carcass-Priced Hogs: 5-day rolling average of all hog carcass measurementsand range of base price data submitted.The Fat Free Lean Index (FFLI) is anestimate of the amount of muscletissue in a carcass.101INFORMATIONMEASUREMENTS BASED ON SLAUGHTER DATA SUBMITTED5-Day Rolling Average Market Hog: 201.10 lb carcass, 0.65 inch back-fat, 7.05 square inch loin/2.35 inch loin depth, FFLI: 52.92%Price Range 66.50 - 72.50SWINE OR PORK MARKET FORMULA PURCHASE (Including Packer Sold)Barrows & Gilts (carcass basis): 192,048Base Price Range 63.92 - 80.83, Weighted Average 69.12NEGOTIATED PURCHASE (Including Packer Sold)Barrows & Gilts (live basis, 240-320 lbs): 1,813Compared to Prior Day’s closing weighted average (LM HG200), 1.43 higher Price Rng 48.00 - 55.00, Wtd Avg 52.05, 5Day Rolling Avg 50.18NEGOTIATED FORMULA PURCHASE (Including Packer Sold)Barrows & Gilts (live basis, 240-320 lbs): 1,961*Price not reported due to confidentiality* 5 Day Rolling Avg -COMBINED NEGOTIATED AND NEGOTIATED FORMULA PURCHASES (Including Packer Sold)Barrows & Gilts (live basis, 240-320 lbs): 3,774*Price not reported due to confidentiality* 5 Day Rolling Avg -BARROWS & GILTS PURCHASE BY STATE OF 278Montana197North 9Pennsylvania3,695South Carolina340South gin of hogs. The state where hogswere fed to slaughter weight. Volumeincludes all purchases.*Price not reported due to confidentiality, For more information visit: ntialityGuidelines.pdf*Base Price is the price from which no discounts are subtracted and no premiums are added.Source: USDA Livestock, Poultry & Grain Market News Division, Des Moines, IA515-284-4460 email: desm.lpgmn@ams.usda.gov 24 Hour recorded market information -poultry-grainUSDA is an equal opportunity provider, employer, and lender.4
MARKET101INFORMATIONUnited States Department of AgricultureFIGURE 2: EXAMPLE OF LM-HG201, DAILY DIRECT HOG PRIOR DAY-SLAUGHTERED SWINEAgricultural Marketing ServiceDate of the report.Hogs in this report were slaughtered onthis business day, midnight to midnight.LM HG201Des Moines, IowaFri, Dec 30, 2016NEGOTIATED OTHER MARKETSWINE OR PORK OTHER PURCHASE NEGOTIATED TOTALS/FORMULA MARKET FORMULAARRGMENTFORMULA WTD AVGPurchase types.Producer Sold:Swine owned by a producer beforeslaughter and sold to a packer.HEAD COUNTCARCASS BASE PRICEAVG. NET PRICEAverage price before premiums anddiscounts are applied by purchase price.LOWEST NET LOTHIGHEST NET LOTAVG. LIVE WTAVG. CARCASS WTAVG. SORT LOSSAVG. BACKFATAVG. LOIN DEPTH (LD)LEA (LD Converted)AVG. LEAN %(Packer Buying Programs)Swine that are owned by a packer(including a subsidiary or affiliate of thepacker) for more than 14 days immediately before sale for slaughter; and soldfor slaughter to another packer.Price after premiums and discountsare applied.Back fat depth in inches.Muscle depth in inches.Loin eye area, in inches.Calculated standard lean yield.Swine that a packer (including a subsidiary or affiliate of the packer) ownsfor at least 14 days immediately beforeslaughter.USDA Market NewsNATIONAL DAILY DIRECT HOG PRIOR DAY REPORT - SLAUGHTERED SWINESlaughter Data for Thursday, December 29, 2016Barrows and Gilts (Live and Carcass Basis): 404,858Total volume reported for the prior dayfor all purchase types.Average discount resulting from swinenot falling within the individual packer’sestablished carcass weight or lotvariation range.**SAMPLE 10.672.627.8955.60Packer Sold:TOTALS/WTD AVGAll Purchase TypesHEAD COUNT18,641CARCASS BASE PRICE54.37AVERAGE NET PRICE57.67AVERAGE OF LOWEST NET LOTS50.60AVERAGE OF HIGHEST NET LOTS65.49AVERAGE LIVE WT275.07AVERAGE CARCASS WT208.04AVERAGE SORT LOSS-1.71AVERAGE BACKFAT0.62AVERAGE LOIN DEPTH (LD)2.56LOINEYE AREA (LD Converted)7.70AVERAGE LEAN PERCENT56.46(Packer Buying Programs)Packer Owned:HEAD COUNTAVERAGE LIVE WTAVERAGE CARCASS WTAVERAGE BACKFATAVERAGE LOIN DEPTH (LD)AVERAGE LEAN PERCENTUSDA is an equal opportunity provider, employer, and lender.TOTALS/WTD AVG110,261289.59217.500.712.5053.765
MARKETUnited States Department of AgricultureAverage hog measurements of all hogsslaughtered on the previous day.MEASUREMENTS BASED ON SLAUGHTER DATA REPORTED:Agricultural MarketingPrior Slaughter Day’sServiceAverage Market Hog based on reported slaughter data:213.26 lbs carcass; BF 0.68; LD 2.59; LEA 7.80; FFLI 53.10%The Fat Free Lean Index (FFLI) is anestimate of the amount of muscletissue in a carcass.CARCASS-BASED PURCHASES:Wtd Avg Base 58.09Wtd Avg Net Price 60.10Average carcass base price and netprice for all producer and packer soldpurchase types from the prior dayslaughter.SWINE SCHEDULED FOR DELIVERY TO PACKING PLANTS FOR SLAUGHTER(Dates based on reporting days) Head CountDecember 30, 2016397,957December 31, 2016229,013January 01, 2017156January 02, 201753,772January 03, 2017349,733January 04, 2017346,961January 05, 2017347,699January 06, 2017362,467January 07, 2017261,390January 08, 201717,623January 09, 201792,179January 10, 201798,970January 11, 201797,284January 12, 201795,043Swine scheduled for delivery to packersduring the next 14 days as estimatedfrom packer-submitted purchase data.Total producer-sold negotiated andnegotiated formula hogs.Producer Sold:HEAD COUNTCARCASS BASE PRICEAVERAGE NET PRICELOWEST NET LOTHIGHEST NET LOTAVERAGE LIVE WTAVERAGE CARCASS WTAVERAGE SORT LOSSAVERAGE BACKFATAVG LOIN DEPTH (LD)LEA (LD Converted)AVERAGE LEAN PERCENT(Packer Buying Programs)Source:NEGOTIATED .87USDA Livestock, Poultry & Grain Market News Division, Des Moines, IA515-284-4460 email: desm.lpgmn@ams.usda.gov24 Hour recorded market information -poultry-grainUSDA is an equal opportunity provider, employer, and lender.6101INFORMATION
accounting for 97 percent of swine sales and production in the United States. AMS Market Reporters review between 7,000-11,000 swine data records on a daily basis. This data is used to publish 20 daily and 2 weekly swine reports. A listing of the reports can be found in the green box below. Key LMR Definitions . An important aspect of any law
