The U.S. hog inventory on 1 June was 79.6 million head, up 5.2 percent from a year ago. The supply is likely to stay elevated through the rest of the year. As a result, hog prices are down 41 percent YoY. The elevated pork processing margin does not characterize profit but rather the difference between the hog acquisition price and the cutout value. The margin is declining as higher processing costs begin to subside. Still the herd greatly exceeds processing capacity.
The number of animals over 120 pounds is also elevated versus a year ago, and these animals are much more challenging to process into the retail cutout. However, moving the carcasses into export is relatively easier.
At the same time, Chinese pig prices are rising &ndash...
What You Need to Know Today: Russia rejected calls for a ceasefire in the Black Sea, including a proposal to halt attacks on civilian shipping that could help restore grain flows from Ukrainian ports. Tyson Foods announced plans to permanently close its Joslin, Illinois, beef processing facili...
The big news in the cattle markets yesterday was Tyson Foods’ move to close two more beef plants. One of them, the Joslin, Illinois, plant was shuttered immediately after the announcement. The other, in Eagle Mountain, Utah, is a case-ready plant that does not slaughter cattle. Tyson also...
The Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) on Wednesday. In July, the CPI rose 0.1 percent, seasonally adjusted, and rose 3.4 percent over the last 12 months, not seasonally adjusted. The index for all items less food and energy, or the “core” infla...
