Hog Prices-Markets
Brad Kooima of Kooima Kooima Varilek says cattle futures recovered nicely from Friday’s selloff with some contracts making new highs for the move, pricing in record cash cattle trade. Grain markets are seeing fund buying with soybeans and meal leading on dry weather forecasts for Argentina.
Cash cattle averaged $195.68 per cwt. while lean carcass hog prices were at $81.02 per cwt., both up slightly from last week.
From trade and deregulation to alternative land uses and cash rent prices, ag economists have no shortage of issues on their radar for 2025.
Cash cattle averaged $194.99 per cwt. while lean carcass hog prices were at $80.35 per cwt.
The packer/feeder margin spread grew this week in favor of the feeder at $285 per head while pork producers found positive margins of $39.77.
Packer margin losses grow, with beef packers at a loss of -$91.33 per head and pork packers averaging losses of -$5.87 per head.
Tariffs could lead to produce shortages as well as price hikes, experts warn Mexico and Canada are top suppliers of U.S. agricultural imports. Tariffs may disrupt cattle and pork trade between U.S., Mexico and Canada.
Margins widened this week this week for pork and beef producers while packer margins remain in the red for beef at -$34.67 and decreased for pork to $8.65.
After posting a record net revenue in the third quarter and a 571% increase in net income, year-over-year, JBS raised its earnings estimates for 2024.
The estimated total cost for finishing a steer last week was $2,770 per head. Hogs placed for finishing last week had a breakeven at $68.36 per head.
Time is running short for Congress to come together to address the farm bill in a bipartisan way, says U.S. Secretary of Agriculture Tom Vilsack.
Beef packers saw profits increase $26 per head to a total loss of $86 per head. That puts the packer/feeder margin spread at $289 per head in favor of the feeder. Meanwhile, pork packers saw average profits of $25 per head, up $2.68 from the previous week.
U.S. Meat Export Federation announces new records for volume and value for pork exports will be achieved in 2024. While not as strong, beef exports are holding their own, led by Mexico purchases.
August numbers reveal exports of U.S. pork increased year-over-year and U.S. beef exports were below year-ago levels, according to USDA data.
John Nalivka of Sterling Marketing shares his weekly Beef and Pork Profit Trackers, giving us a deeper look at what’s going on in the markets.
Longshoremen at ports along the East and Gulf Coasts are set to strike when their current labor contract expires at 12:01 a.m. on Oct. 1.
The Grinch is writing closeouts ahead of the holidays as cattle and hog profit margins tumble to their lowest point since the summer of 2020, just months into the COVID pandemic.
Negotiated cash cattle increased an average of $1.18 per cwt. the week ending Sept. 14 and profit margins dropped by $13 per head to an industry average of $130.66 per head, according to Sterling Marketing. Farrow-to-finish hog producers found positive margins of $16 per head last week, down $2.91 from the previous week.
Even though the majority of U.S. red meat exports flow out of the West Coast ports, USMEF’s Dan Halstrom says a strike in the east and south would still have a significant impact on the industry.
The key is demand and managing feedlot break-evens as cattle numbers continue to decline, says John Nalivka, president of Sterling Marketing Inc.
How Low Will Grain Prices Go?
Beef packers saw significant margin improvement the week ending August 30, while pork packer margins, though down from the previous week, were sharply higher than a year ago.
Last week’s substantial drop in the breakeven feeding cost for feeder cattle placed on feed last week is significant to the market outlook, says John Nalivka, president of Sterling Marketing Inc., in the latest Sterling Profit Tracker.
Negotiated cash cattle retreated an average of $2.31 per cwt. The week ending Aug. 17 and profit margins dropped by $79 per head to an industry average of $167 per head, according to the Sterling Beef Profit Tracker.
While I do not need the government to tell me how the cost of living has increased, the most recent data for July is now available. To be honest, I question whether the officially reported inflation figures align with what we are experiencing.
Tyson Foods surpassed Wall Street expectations for third-quarter revenue and profit, indicating that demand was rebounding for its meat products, while lower grain prices reduced costs for animal feed.
Soybeans Make New Lows....Again and Pull down Corn and Wheat
Grains Trade Weather and China Economic News
Hogs Bounce Off Contract Lows
The Meat Institute says the proposed rule change to the Packers and Stockyards Act is attempting to set meat production back by encouraging litigation and limiting how livestock producers can market animals to packers.