Markets

Morning Hog Market Report

June hogs closed moderately lower on the session yesterday, although a jump in cattle futures helped the market trade slightly higher through choppy and two-sided trading early in the session. Weakness was thought to have come from lower belly prices this week and a sluggish cash market trade, but a surge higher in cattle helped to support the market for a temporary bounce into mid-session before posting close near the lows. The market has traded lower for five sessions in a row and pushed moderately lower again during overnight trading. Cash hogs are expected to trade $0.50-$1.00 lower today, and pork cut-out values continue to decline. While cash belly prices were down sharply overnight, so were hams, loins, and ribs. With the sharp decline in the US Dollar, many traders believe that export demand might get a boost. The recent USDA Cold Storage report did not show robust demand, and some are concerned over a lull in export demand. Pork cutout values released after the close yesterday came in at $92.44, down $2.38 from Tuesday and down from $96.34 the previous week. This is the lowest pork trade since March 17th. Cash bellies were down $2.75 to $139.83 from $147.40 last week. Cash hogs traded steady to $1.00 lower yesterday, with further weakness expected today as packer margins have turned weak and caused slower demand for live inventory. On top of the demand issues, weekly average weights for Iowa/Minnesota for the week ending April 23rd came in at 272.9 pounds as compared with 272.2 pounds last week and 269.9 pounds last year. The estimated hog slaughter came in at 411,000 head yesterday. This brings the total for the week so far to 1.090 million head, down from 1.214 million head last week at this time and down from 1.222 million head a year ago. The Lean Hog Index for the 2 days ending April 25th is 94.58.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities