Hog Prices-Markets
Sen. Josh Hawley introduces the Protecting Interstate Commerce for Livestock Producers Act to protect farmers from costly regulations – made in other states – that will hurt their business and drive-up consumer costs.
It was a seasonally quiet week in grocery store meat departments and up the distribution chain for turkeys and hams, reports Steiner Consulting Group in the Daily Livestock Report. Here’s a look at pork, turkey and beef.
Cattle feeding margins fell deeper into the red last week while packer margins improved modestly. Pork producer margins erode further underwater.
Cattle feeding margins declined nearly $100 per head last week with lower cash bids and rising costs. Pork producer margins remain mired in red ink.
Although August exports of U.S. pork were steady year-over-year, beef exports were well below the large totals of August 2022, USMEF reports. Pork exports were led by Mexico and beef exports showed improvement over July.
Packers applied the brakes and cattle slaughter declined another 13,000 head last week and capacity utilization dipped 9%. Pork producer margins print $7 in the red.
Higher cattle prices and declining wholesale beef prices pushed packer margins further underwater last week. Pork producer margins inched into the black.
The Livestock Consolidation Research Act would direct a study on the impact of livestock industry consolidation, and a report about how this has affected new market entrants, access to resources and purchasing power.
U.S. pork exports wrapped up an excellent first half of 2023 with another strong performance in June. Although numbers are below the record pace established in 2022, June beef exports topped $900 million in value.
The July Ag Economists’ Monthly Monitor showed several key changes from June including a bigger cut to corn and soybean yields, a drop in corn and soybean prices and more bullish cattle and hog prices.
There’s a $400 spread between cattle feeding margins and packer margins – now in the cowboy’s favor. Cattle harvest is lower as packers reduce hours, a signal their margins are in the red.
Canada’s red meat sector expressed deep disappointment after the announcement that the United Kingdom joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The Sterling Beef Profit Tracker reports average cattle feeding closeouts were in the black last week, but with little room to spare.
Cattle and hog finishing margins are both positive for the fourth consecutive week despite the fact cash prices for cattle and hogs were slightly lower last week.
Average cattle and hog finishing margins are both positive for the third consecutive week, according to calculations in the Sterling Marketing Profit Tracker.
Average feedyard closeouts saw modest profits for cattle last week as cash prices improved. Hog finishing margins declined from near breakeven to a loss of $6 per head.
Higher grain prices and lower cash livestock prices contributed to a decline in feeding margins last week, leaving closeouts showing red ink for both cattle and hogs.
Cattle and hog feeding margins were little changed last week, with both recording modest losses. Beef packers saw improved margins on significant gains in wholesale beef prices.
Cash fed cattle prices ended last week $10 per cwt. lower than last year while the beef cutout closed $16 higher than the same week a year ago. The result? Packer margins $314 per head more than last year.
Cattle and hog feeding both saw solid average profits for the week ending April 2, boosted by higher average farmgate prices. Cattle were positive for the second week, while positive hog margins entered a third month.
Cattle and hog feeding operations are experiencing the highest market prices since before the pandemic began more than a year ago. Hog margins were positive for the 11th consecutive week.
Market hogs found twice the profit margin of fed steers last week due to a rally that has added nearly $22 per cwt. to lean hog carcass prices over the past month, while cash cattle prices have been stuck in neutral.
Profit margins for cattle and hogs continue trending in opposite directions as feedyard closeouts slipped below breakeven and hog margins saw another boost from higher prices.
Cattle feeding margins improved $60 per head the week ending Feb. 12 and hog margins reported profits for the second consecutive week as lean hog prices rallied.
Lower average cattle prices last week cut average feedyard margins by $43 per head last week, while pork producers saw a $5 per head increase in average margins.
Average cattle feeding margins improved the final week of March, while average farrow-to-finish hog margins declined modestly.
Cattle prices moved higher last week but cattle feeding margins remain modest. The supply-demand fundamentals are trending in favor of cattle feeders.
Spiking wholesale beef prices the week before Christmas helped lift packer margins into the black while increasing cattle feeding margins.
Average cattle feeding margins increased last week as negotiated cash prices set new record highs.
Rising wholesale beef prices and declining packing plant utilization are two indicators to watch as the 2023 cattle markets unfold.