Download PDF The hog and pork complex has remained on a downward trajectory inrecent days. The pork cutout has lost almost $10 over the past seventrading days and the NDD cash hog market is down $2.60 over thesame period. Futures traders have remained optimistic that aturnaround is coming as the nearby Dec LH contract dropped …
Download PDF The hog and pork complex eased a bit this week as the cutout droppedabout $2.50 on a weekly average basis and the negotiated hog marketswere down a similar amount. The gains that the cutout posted lastweek were erased this week by a downdraft in the loin primal. Hamswere a little higher and bellies …
Download PDF Uh-oh, here we go again. After several weeks of trending lower,the cutout posted a $1.65 increase this week. We have seen thisbehavior before. The chart below shows the LHI and nearbyfutures between the Aug and Oct expirations. Here the index wasin a steady downtrend until about Sept 20, when some transitorygains in the …
Download PDF Everything continued lower in the hog and pork complex thisweek. The cutout lost $4.12 on a weekly average basis and theNDD negotiated hog market was about $3.50 lower. At this point,everything is being driven by the cutout and the cutout is beingdriven by the bellies and hams. The belly primal continued towork lower, …
Download PDF This week it was the bellies’ turn to pressure the cutout lower.The chart to the right indicates that after several weeks of being thebad guy, hams actually added a small amount to the cutout. Butthat wasn’t nearly enough to offset the pressure that came fromthe belly primal. On a weekly average basis, the …
Download PDF The cutout was lower for the second week in a row, dropping $6on a weekly average basis. The negotiated hog markets weredown less, losing only about $2/cwt. That caused packer marginsto compress about $5 on the week, now sitting just a hair below$30/head. Further erosion in ham prices are largely responsiblefor the decline …
Download PDF Last week’s relatively small kill didn’t do much to support the pork market this week as the cutout lost $2.44 on a weekly average basis. The negotiated markets were also lower, down $3-4. Interestingly, the LHI was almost unchanged on the week. Nearby futures were down a little over $2. Last week, I …
Download PDF The big news in the hog and pork complex this week was a $7+ surgein the cutout (weekly average basis) that was driven primarily by stronggains in the hams and bellies (chart below). The remaining primalswere pretty much steady on the week. The cutout gains wereimpressive considering the size of last week’s kill. …
Download PDF Pork packer margins expanded to $25/head this week as hog pricescontinued to fall and the pork cutout managed to hold steady. Thenegotiated hog markets were $5-6 lower on a weekly average basisand the cutout was lower through Thursday and then a sharp bumphigher on Friday moved the weekly average about $0.85 over lastweek’s …
Download PDF Both the cutout and the LHI were down about $2.75 on an average basis this week, so packer margins didn’t change much. They currently sit close to $17.50/head. The negotiated hog markets have been moving steady lower, with the WCB down $6.15 this week and the NDD down $4.56. Those declines haven’t been …