Hog slaughter remains well below levels implied by September Hogs and Pigs survey

Pork Profit Maximizer – Retail Edition Hog slaughter numbers so far are lower than previously expected. Take the slaughter numbers from last week. Initially, USDA pegged hog slaughter for Tuesday at 473,000 head, which would be a full slaughter run given current capacity. However, that number was revised lower by about 22,000 head as an […]

Pork exports improve modestly in August but more robust growth is needed in Q4

Weekly Pork Profit Maximizer – Food Service Edition Pork exports were higher in August but the rate of growth was disappointing considering that August production was the highest on record. Exports to Japan have recovered in the last three months. Shipments in August were 33,646 MT, 8.8% higher than a year ago. For the year […]

Pork prices will depend on the extent of the damage from Hurricane Florence

Weekly Pork Profit Maximizer – Food Service Edition Highlights Flooding is always a major issue as it tends to impact both infrastructure as well as hog supplies. During Hurricane Floyd (1999), some 100,000 hogs were lost together with millions of broilers and turkeys. At this point it makes no sense to speculate about the potential […]

Pork market volatility remains high on hurricane supply disruptions

Weekly Pork Profit Maximizer – Retail Edition Highlights Pork cutout values were notably higher this week but we caution about reading too much into the latest numbers. The supply of pork was sharply curtailed as two major hog processing plants were knocked offline by approaching Hurricane Florence in North Carolina. Smithfield has two plants in […]

Hog prices have declined by more than 20% from their early summer peak and are expected to remain well below year ago levels through the end of the year

Pork Profit Maximizer – Retail Edition Highlights US domestic pork availability is burdensome in the near term and hog prices have collapsed as packers struggle to balance the seasonally softer pork demand in late summer with the rapid ramp-up in hog slaughter. Expectations of higher supplies in the fall may have encouraged processors and other […]

The flow of hogs to market has been anything but smooth

Pork Profit Maximizer – Retail Edition Highlights Hog slaughter three weeks ago was up 8% compared to a year ago. Then for the week ending July 28 slaughter registered an 11% decline as the largest US pork packer had to shut down plants in order to perform scheduled maintenance. It appears that slaughter at Smithfield […]

Hog and pork markets remain extremely uncertain as buyers sit on the sidelines and export demand remains difficult to predict

Pork Profit Maximizer – Food Service Edition Highlights The nearby CME Lean Hog August futures contract closed on Friday at $57.70/cwt, a 25% decline in just over a month. Fall and winter contracts have also followed suit, with December now trading at around $46 Clearly the catalyst for the decline is the imposition of retaliatory […]