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USDA Market News 

Swine Report Review

Taylor Cox

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 Intro to LMR Swine Reporting

 Stakeholder Meetings

 Purchase Types

Overview

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LMR Swine

 LMR Swine reporting started in 2001.

 Packers with a federally inspected plant 

slaughtering over 100,000 swine per year on 

average over 5 years or packing companies 

slaughtering 200,000 sows and boars per 

year on average over 5 years. 

 Currently 50 plants that are located in 19 

different states and owned by 26 companies 

are submitting swine data.

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LMR Staff and Data

 Cover about 97% of swine trades.

 Reporters review between 7,000 to 11,000 

records per day and have technical 

processes in place that flag any data falling 

outside of preset parameters. This data is 

then confirmed by reporters through direct 

correspondence.

 AMS applies the 3/70/20 Confidentiality 

Policy to all LMR data.

 20 daily and 2 weekly reports or 102 

reports each week covering 2.0 to 2.5 

million head per week. 5
LMR Staff and Data

 At 7:00 AM, 2 reporters cover prior day 

purchase data for barrows and gilts while 1 

covers prior day purchase data for sows and 

boars (midnight to midnight).

 At 9:00 AM, 1 reporter covers prior day 

slaughter data.

 At 10:00 AM and 2:00 PM, 2 reporters cover 

morning and afternoon purchases or 119A and 

119B submissions (1:30 PM-9:30 AM and 1:30 

PM-1:30 PM).

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LMR Swine Forms

LPS 118A, 118B, & 118C (14 day actual 

schedule of delivery, prior day slaughter, 

and prior day purchases)

LPS 119A & 119B (daily actual and 

estimated purchases for morning and 

afternoon reports and individual lot 

information)

LPS 120 (Weekly non-carcass merit 

premiums)

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LPS 118C, 119A, and 119B Forms

 118C: total number of swine purchased by 

purchase type, base price and weight for all 

swine purchased on a live weight basis, and 

state of origin of the swine

 119A: estimates of purchases for the day by 

purchase type and actual purchases for the 

submission period by purchase type.

 119B: actual purchases for submission period 

by purchase type, average live weight, base 

price, head count, and state of origin. 

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LMR Swine Data (119B)

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Prior Day Purchase and Slaughter Reports

Barrows and Gilts 

(8:00 AM): 

National HG200

Iowa/Minnesota HG204

Eastern Cornbelt HG207

Western Cornbelt HG208

Boars and Sows 

(8:00 AM): 

National HG230

Iowa/Minnesota HG231

Eastern Cornbelt HG232

Western Cornbelt HG233

Slaughter (10:00 AM): Daily Prior Day Slaughter HG201

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Morning and Afternoon Purchase Reports

Morning Reports 

(11:00 AM): 

National HG202

Iowa/Minnesota HG205

Eastern Cornbelt HG209

Western Cornbelt HG211

Afternoon Reports 

(3:00 PM): 

National HG203

Iowa/Minnesota HG206

Eastern Cornbelt HG210

Western Cornbelt HG212

Weekly Reports: Weekly National Direct Swine Report 

HG214, Weekly Non-Carcass Merit Premium (LPS 120) 

HG250

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Stakeholder Meetings

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Stakeholder Meetings

 Baseline Study, Meetings, and Report to 

Congress

 Tasks:

• Purchase Type Reporting Guidance:

• Swine Purchases Based on the CME 

Lean Hog Index, Effective July 3, 2017

• Formula Purchase where the Base 

Price is Known, Effective July 3, 2017

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Purchase Types

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LMR Purchase Type Comparison

5 Area LMR Cattle 

Purchase Types LMR Swine Purchase Types

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Swine Purchase Types

•Negotiated - Producer Sold (Type 1)

•Negotiated - Packer Sold (Type 5)

•Other Market Formula - Producer Sold (Type 2) 

•Other Market Formula – Packer Sold (Type 6)

•Swine or Pork Market Formula - Producer Sold (Type 3)

•Swine or Pork Market Formula – Packer Sold (Type 7)

•Other Purchase Arrangement - Producer Sold (Type 4)

•Other Purchase Arrangement - Packer Sold (Type 8)

•Packer Owned (Type 9)

•Negotiated Formula - Producer Sold (Type 10)

•Negotiated Formula – Packer Sold (Type 11)

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Negotiated Purchase Definition

(Types 1 & 5)

 A cash or spot market purchase by a packer of 

livestock from a producer under which the base 

price for the livestock is determined or known 

(hard priced) by seller-buyer interaction and 

agreement regardless of the method of price 

discovery used on a delivery day. Must be 

delivered within 14 days.

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Negotiated Purchase Example

(Producer Sold - Type 1)

 Producer Acme Corp. of Illinois calls Initech of 

Iowa at 3:15 PM yesterday and asks the packer 

what it will give for 170 head of hogs. Producer 

and packer agree to $45.00. Acme will deliver 

its Minnesota finished hogs to Initech in 4 days 

time. 

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Negotiated Purchase Example

(Producer Sold - Type 1)

• Daily AM and PM: National (HG202 and HG203), 

IA/MN (HG205 and HG206), and WCB (HG211 and 

HG212)

• Prior Day: National (HG200), IA/MN (HG204), and 

WCB (HG208)

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Negotiated Purchase Example

(Producer Sold - Type 1)

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Negotiated Purchase Example

(Producer Sold - Type 1)

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Negotiated Purchase Example

(Packer Sold - Type 5)

 Producer Umbrella Corp. located in Iowa has 

8% ownership of competitor Gemma Packing in 

Iowa. At 11:30 AM today, Umbrella Corp. 

contacts packer Hooli of Iowa and negotiates a 

$45.50 base price for its Iowa finished hogs. 

Umbrella Corp. will deliver 165 head of hogs to 

Hooli tomorrow.

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Negotiated Purchase Example

(Packer Sold - Type 5)

• Daily PM: National (HG203) IA/MN (HG206), and 

WCB (HG212)

• Prior Day: National (HG200), IA/MN (HG204), and 

WCB (HG208) 23
Negotiated Purchase Example

(Packer Sold - Type 5)

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Negotiated Purchase Example

(Packer Sold - Type 5)

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Other Market Formula Definition 

(Types 2 & 6)

 A purchase of swine by a packer in which the 

pricing mechanism is a formula price based on 

one or more futures or option contracts.

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Other Market Formula Example 

(Producer Sold - Type 2)

 Producer Wonka Industries of Iowa has a 

longstanding pricing agreement with packer 

Gekko & Co. of Illinois to use a $2.00 basis off 

the CME futures market. At noon today, Wonka 

calls Gekko and both agree to use CME’s 

February futures quote ($68.84). Gekko will pay 

Wonka $66.84 to deliver its 510 head of Illinois 

finished hogs to Gekko on February 8.

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Other Market Formula Example

(Producer Sold - Type 2)

• Daily PM: National (HG203) and ECB (HG210) 

• Prior Day: National (HG200) and ECB (HG207)

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Other Market Formula Example

(Producer Sold - Type 2)

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Other Market Formula Example

(Producer Sold - Type 2)

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Other Market Formula Example 

(Packer Sold - Type 6)

 At 1:00 PM, producer Sterling Cooper of Iowa, 

who owns 11% of competitor Gizmo Packing, 

calls packer Wayne Enterprises of Minnesota to 

lock in 154 head of hogs at the CME February 

futures quote of $55.75 without any basis. 

Sterling Cooper will deliver its Iowa finished 

hogs to Wayne Enterprises on February 5. 

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Other Market Formula Example

(Packer Sold - Type 6)

• Daily PM: National (HG203), IA/MN (HG206), and 

WCB (HG212) 

• Prior Day: National (HG200), IA/MN (HG204), and 

WCB (HG208) 32
Other Market Formula Example

(Packer Sold - Type 6)

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Other Market Formula Example

(Packer Sold - Type 6)

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Swine or Pork Market Formula Definition

(Types 3 & 7)

 Purchase of swine by a packer in which the 

pricing mechanism is a formula price based on 

a market for swine, CME Lean Hog Index, pork 

or a pork product, other than any formula 

purchase with a floor, window, or ceiling price, 

or a futures or options contract for swine, pork 

or pork product. 

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Swine or Pork Market Formula Example

(Producer Sold - Type 3)

 Six months ago producer Ollivander’s Inc. of 

Kansas and packer Genco Pura of Nebraska 

agreed to a pricing arrangement of 91% of the 

pork carcass cutout off the afternoon close 

(PK602) on the day of delivery. Ollivander’s Inc. 

called two days ago and agreed to deliver 170 

head of its Kansas finished hogs to Genco Pura 

for $71.40 yesterday afternoon.

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Swine or Pork Market Formula Example

(Producer Sold - Type 3)

• Daily AM and PM: National (HG202 and HG203) and 

WCB (HG211 and HG212) 

• Prior Day: National (HG200) and WCB (HG208)

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Swine or Pork Market Formula Example

(Producer Sold - Type 3)

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Swine or Pork Market Formula Example

(Producer Sold - Type 3)

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Swine or Pork Market Formula Example

(Packer Sold - Type 7)

 Producer Soylent Corp. of Minnesota, who owns 

22% of Gopher Packing, has a pricing 

agreement with packer Stark Industries of 

Minnesota that the base price is determined the 

day of delivery using the IA/MN (HG204) plus 

$1.00. As of 7:00 AM this morning, Soylent 

Corp. agrees to sell its 164 head of Minnesota 

finished hogs to Stark Industries at $65.17 for 

delivery later today.

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Swine or Pork Market Formula Example

(Packer Sold - Type 7)

• Daily AM and PM: National (HG202 and HG203), 

IA/MN (HG205 and HG206), and WCB (HG211 and 

HG212) 

• Prior Day: National (HG200), IA/MN (HG204), and 

WCB (HG208)

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Swine or Pork Market Formula Example

(Packer Sold - Type 7)

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Swine or Pork Market Formula Example

(Packer Sold - Type 7)

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Other Purchase Arrangement Definition

(Types 4 & 8)

 A purchase of swine by a packer which is not a 

negotiated purchase, swine or pork market 

formula purchase, or other market formula 

purchase. (If it does not fit the other 

categories it goes here.)

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Other Purchase Arrangement Example

(Producer Sold - Type 4)

 Producer Zoomit of Iowa has a longstanding 

cost-plus pricing agreement with packer RonTech of Iowa to use the soybean meal market 

quote for the day prior to ship to determine the 

price of its Iowa finished hogs. Zoomit called 

Ron-Tech a week ago and agrees to deliver 160 

head of hogs today at 8:00 AM for $59.44, 

based off yesterday’s soybean meal close 

quote.

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Other Purchase Arrangement Example

(Producer Sold - Type 4)

• Daily AM and PM: National (HG202 and HG203), 

IA/MN (HG205 and HG206), and WCB (HG211 and 

HG212) 

• Prior Day: National (HG200), IA/MN (HG204), and 

WCB (HG208)

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Other Purchase Arrangement Example

(Producer Sold - Type 4)

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Other Purchase Arrangement Example

(Producer Sold - Type 4)

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Other Purchase Arrangement Example

(Packer Sold - Type 8)

 Producer Konex of Iowa, who owns 27% of 

competitor packing company George’s, has an 

agreement to use the Prior Day Western 

Cornbelt (HG208) plus $0.50 for its Beta Agonist 

Free Iowa finished hogs when it sells to packer 

Hatfan of Iowa. Konex called Hatfan yesterday 

and agrees to deliver 162 head of hogs today at 

9:00 AM for $45.76.

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Other Purchase Arrangement Example

(Packer Sold - Type 8)

• Daily AM and PM: National (HG202 and HG203), 

IA/MN (HG205 and HG206), and WCB (HG211 and 

HG212) 

• Prior Day: National (HG200), IA/MN (HG204), and 

WCB (HG208)

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Other Purchase Arrangement Example

(Packer Sold - Type 8)

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Other Purchase Arrangement Example

(Packer Sold - Type 8)

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Packer Owned Definition

(Type 9)

 Swine that a packer, including a subsidiary or 

affiliate of a packer, for more than 14 days 

immediately before sale or slaughter; and 

sold for slaughter to another packer. 

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Packer Owned Example

(Type 9)

 Producer Scotfind of Kansas owns 15% of 

packer Zotware of Iowa. Scotfind agrees to sell 

a lot of 162 head of Kansas finished hogs to 

Zotware at $60.00 to deliver yesterday 

afternoon.

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Packer Owned Example

(Type 9)

• Prior Day Slaughter (HG201)

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Packer Owned Example

(Type 9)

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Packer Owned Example

(Type 9)

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Negotiated Formula Definition

(Types 10 & 11)

 A purchase of swine by a packer which is 

similar to a negotiated purchase where there is 

interaction between a buyer and a seller to 

settle on a price (unknown) but a formula is 

used as the basis. Must be delivered within 14 

days.

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Negotiated Formula Example

(Producer Sold - Type 10)

 Producer Newex of Ohio negotiates to sell a lot 

of hogs to packer Hottechi of Illinois on Friday 

using next Monday’s Prior Day IA/MN (HG204) 

quote. Newex will deliver 155 head of Iowa 

finished hogs to Hottechi on Monday at 9:00 

AM. The two do not have any longstanding 

agreements. On Monday the IA/MN quote is 

$77.75.

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Negotiated Formula Example

(Producer Sold - Type 10)

• Daily AM and PM: National (HG202 and HG203) and 

IA/MN (HG205 and HG206), ECB (HG209 and 

HG210), and WCB (HG211 and HG212)

• Prior Day: National (HG200), IA/MN (HG204), ECB 

(HG207), WCB (HG208) 60
Negotiated Formula Example

(Producer Sold - Type 10)

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Negotiated Formula Example

(Producer Sold - Type 10)

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Negotiated Formula Example

(Packer Sold - Type 11)

 Producer Green-Plus of Iowa, who owns 12% of 

Dell Packing of Iowa, has extra hogs to sell and 

calls up packer Labdrill of Iowa on Friday. The 

two do not have any longstanding agreements. 

Green-Plus agrees to sell the Iowa finished 

hogs to Labdrill at 90% of the Friday afternoon 

pork cutout (PK602). Green-Plus will deliver the 

162 head of hogs Monday for $45.76.

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Negotiated Formula Example

(Packer Sold - Type 11)

• Daily AM and PM: National (HG202 and HG203), 

IA/MN (HG205 and HG206), and WCB (HG211 and 

HG212) 

• Prior Day: National (HG200), IA/MN (HG204), and 

WCB (HG208)

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Negotiated Formula Example

(Packer Sold - Type 11)

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Negotiated Formula Example

(Packer Sold - Type 11)

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Purchase Type 

Scenarios

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Swine Purchase Types

•Negotiated - Producer Sold (Type 1)

•Negotiated - Packer Sold (Type 5)

•Other Market Formula - Producer Sold (Type 2) 

•Other Market Formula – Packer Sold (Type 6)

•Swine or Pork Market Formula - Producer Sold (Type 3)

•Swine or Pork Market Formula – Packer Sold (Type 7)

•Other Purchase Arrangement - Producer Sold (Type 4)

•Other Purchase Arrangement - Packer Sold (Type 8)

•Packer Owned (Type 9)

•Negotiated Formula - Producer Sold (Type 10)

•Negotiated Formula – Packer Sold (Type 11)

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Scenario 1

 Today is New Years Eve (January 1st). Joe of 

Bioplex (producer) and Jay of Finhigh (packer) 

meet at a party and start talking about hogs. Joe 

and Jay agree to a year long pricing 

arrangement using the negotiated quote on the 

HG212 report plus $1.50 on the day of delivery. 

Joe unannounced delivers 50 head of hogs to 

Jay on January 6. (Eventually prices at $71.56.) 

 What is this Purchase Type?

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Scenario 1

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Swine or Pork Market Formula – Producer Sold (Type 3)
Scenario 2

 Producer Blackzim of Minnesota and 

Groovestreet of Minnesota have a pricing 

agreement where packer Groovestreet will pay 

Blackzim the CME Lean Hog Index quote on the 

day of delivery for its Minnesota finished hogs. 

Blackzim calls Groovestreet two months later 

and agrees to take the CME Lean Hog Index 

quoted price tomorrow the day he delivers 60 

head of hogs. (The price winds up being 

$69.03.)

 What is this Purchase Type?

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Scenario 2

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Swine or Pork Market Formula – Producer Sold (Type 3)
Scenario 3

 Today at 2:00 PM producer Betatech of Kansas 

agrees to sell its hogs to packer Cancity of 

Nebraska using today’s CME Lean Hog Index 

(1:30 PM quote) at $45.59. Betatech will deliver 

55 head of Kansas finished hogs this afternoon 

at 2:30 PM.

 What is this Purchase Type?

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Scenario 3

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Negotiated Sale – Producer Sold (Type 1)
Scenario 4

 At 8:00 AM today, producer Sonron of Ohio 

agrees to sell 75 head of hogs to packer JTexon of Illinois. Sonron will receive a $1.00 

premium for these Ohio finished, Beta Agonist 

Free hogs for delivery this afternoon at 2:00 PM. 

(Prices at $72.12.)

 What is this Purchase Type?

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Scenario 4

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Other Purchase Arrangement – Producer Sold (Type 4)
Scenario 5

 Producer Doncon of Kansas owns 10% of 

packer Plexzap of Nebraska. Doncon sells 25 

head of Kansas finished hogs to Plexzap using 

88% of today’s afternoon pork cutout (PK602) 

for delivery tomorrow morning.

 What is this Purchase Type?

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Scenario 5

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Packer Owned (Type 9)
Scenario 6

 Producer Isdom of Iowa and packer Golddex of 

Minnesota have a pricing arrangement to use a 

1:30 PM CME Futures quote month. On 

February 1, Isdom agrees to deliver 200 head of 

Iowa finished hogs to Golddex on February 7 at 

$68.87.

 What is this Purchase Type?

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Scenario 6

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Other Market Formula – Producer Sold (Type 2)
Scenario 7

 Producer Namzim Farms of Iowa is owned by 

packer Donware Pack of Iowa (15%). Namzim 

Farms sells 100 head of Iowa finished hogs to 

competitor Ginko Packing in Nebraska on 

Monday using the Prior Day IA/MN quote 

($63.25) on the day of delivery (Thursday).

 What is this Purchase Type?

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Scenario 7

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Swine or Pork Market Formula – Packer Sold (Type 7)
Scenario 8

 Producer Sumace Farms of Kansas is owned by 

packer Pope & Associates of Nebraska (7%). 

Sumace Farms sells 4,000 head of Kansas 

finished, Antibiotic Free hogs to a competitor in 

Iowa with a $3.00 premium ($88.00). 

 What is this Purchase Type?

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Scenario 8

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Other Purchase Arrangement – Packer Sold (Type 8)
Scenario 9

 Producer Dynamic Industries of Iowa owns 9% 

of packer Clockworx of Iowa. Dynamic 

Industries calls Openlane Packing today 

(Monday) with 40 head of hogs to sell. Dynamic 

Industries and Openlane Packing do not have 

any prior agreements. Openlane Packing 

agrees to use the unknown National quote 

(HG203) on the day of delivery (Friday). 

(Eventually priced at $44.03.)

 What is this Purchase Type?

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Scenario 9

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Negotiated Formula – Packer Sold (Type 11)
Scenario 10

 Producer Yearin Corp. of Minnesota has an 

extra lot of hogs to sell. On Monday morning, 

Yearin calls packer Cheers and Duff Corp. in 

Minnesota and agrees to sell 80 head of 

Minnesota finished hogs to Cheers and Duff 

Corp. using next Wednesday’s unknown 

Prior Day National quote (HG200) for 

delivery later that afternoon (1:30 PM). 

(Eventually priced at $75.25.)

 What is this Purchase Type?

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Scenario 10

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Negotiated Formula – Producer Sold (Type 10)
Questions?

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Contact Information

Taylor Cox, Field Chief

USDA AMS Livestock, Poultry, and Grain Market News

Taylor.Cox@ams.usda.gov

515-284-4460

Web: https://www.marketnews.usda.gov/mnp/ls-home

Livestock Mandatory Price Reporting Resources: 

https://www.ams.usda.gov/rules-regulations/mmr/lmr

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