The world’s largest pork market, China, may be experiencing a more than 50 percent decline in production and yet U.S. hog prices are softening. Part of the problem is that hog slaughter as a percent of packing capacity is well above year-ago levels (see graph below). The ratio of slaughter to packing capacity is running at 89.6 percent, versus 86.6 percent in 2018. As this ratio increases, prices tend to decrease since packers don’t want to buy hogs when their hook space is full.
The increase in slaughter to packing ratio is occurring at the same time there is a seasonal downturn in hog and pork prices. Prices this year began to soften a month or two earlier. Some analysts this week highlighted how U.S. pork expo...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
