Current pork cutout value movements continue to reflect 2015’s increased production, softer export sales and some buildup in frozen inventories, according to Len Steiner and Steve Meyer in the “Daily Livestock Report.”

Pork cutout values are softer than the past five-year average but currently are tracking at $75.24/cwt., which is above year-ago levels, they said. Within the cutout value, pork bellies have been outperforming other cuts from a price standpoint. They are currently around $56/cwt. which Steiner and Meyer said is higher than year-ago prices but still below record ramp-up in belly pricesin the spring of 2014.

Wholesale pork spare rib prices, on the other hand, are trading just below year-ago values, at $167.42/cwt., but are still above their five-year average, they said.

“Performance-wise, bellies and spare ribs are the positive drivers in the pork cutout value right now. Combined, they account for 20% of a pork carcass,” Steiner and Meyer said.

Ham prices are tracking at year-ago levels but are below the five-year average, while pork loins are currently just under $90/cwt., which is $9/cwt. below 2015.

Seasonally, Steiner and Meyer suggested that prices for bellies, loin and spare ribs should see some upward movement into spring and summer.

“This past week has seen some significant upswing in the lean hog futures contract. Barrow and gilt carcass prices have taken a dip the last couple weeks, but they started the year off with a strong upswing, and feeder pig prices continue to remain above year-ago levels,” they explained.

Looking forward, they said pork production is expected to moderate this year, compared to the 7% year-over-year increase last year. This should help decrease the downside price risk, they added.