More Packing Capacity and Fewer Hogs Bolster Prices and Pressure Margins

Pork Profit Maximizer – Retail Edition February 4, 2019 It is important to understand the myriad ways in which hogs are priced and delivered these days. Gone are the days when all you had to do was look at the IA/MN lean base price and have a pretty good idea where hogs were trading at. […]

Total inventory of beef, pork, chicken and turkey in cold storage at the end of October was 2.474 billion pounds, 1.4% higher than a year ago

Pork Profit Maximizer – Retail Edition Inventories declined 5.6% compared to the previous month compared to an average drawdown of about 3.6% in the last five years. High prices for some products, especially beef and pork, appear to have encouraged users to draw down inventories rather than continue to pay inflated prices in the spot market. […]

USDA lifts most of the ban on Polish pork and belly prices ease lower

Pork Profit Maximizer – Retail Edition USDA announced on October 18 that it was suspending all pork imports from Poland. This followed a finding that a processing facility in Poland had shipped product without following the very stringent protocols put in place to protect against African Swine Fever. The finding also triggered a quick review […]

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 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 […]

Pork exports near zero to China and Mexico

Pork Profit Maximizer – Retail Edition Highlights Lean hog futures have declined sharply since the beginning of July on concerns that slowing export sales and record production will force more product into domestic channels. The two markets where US pork now faces new tariffs are China and Mexico. Two rounds of 25% tariffs on US […]