Jim Lengthy Pork Commentary, Random Observations on Pork Market, August twenty eighth 2023 – Swineweb.com


  • Final week travels led us to southern Indiana. Final Tuesday feed mill we visited there was shopping for corn for $4.65 bushel that day. Proprietor stated massive distinction from $7.00 he paid for too many weeks.
  • U.S. money isoweans proceed to be low. Final week $12 delivered. This we consider is the longest time costs have been this low, our calculation there was 20 weeks of costs related. Breakeven is about $40. At this level no signal of a lot worth appreciation quickly. We do anticipate that by December, decrease feed prices, fewer pigs and appreciating lean hog futures will result in $60 plus isoweans. For sow manufacturing dropping $30 per head, it could possibly’t be quickly sufficient. The present losses are resulting in ongoing sow herd liquidation.
  • U.S. sow slaughter in July was 270,100, a yr in the past July 237,600. A rise of 33,000. Final yr June – August the U.S. sow herd declined 16,000. There is no such thing as a doubt in our thoughts the U.S. herd is declining. We anticipate the U.S. herd can be down a minimum of 100,000 June – August this yr. We extraordinarily doubt present USDA projections that the U.S. will produce extra Pork in 2024 than 2023 will come to fruition.
  • Final week Packer owned hogs to market averaged within the 271 – 273 lb. vary relying on the day. Again in April they had been within the 290’s lb. space. We anticipate Packer owned hog weights have declined on account of regular seasonality but in addition Packer push to maintain shackles full of their vegetation. The low 270’s for Packer owned hogs makes us consider that stock of hogs could possibly be very present. Though it was scorching final week within the Midwest, temperatures from June till now have been cooler than seen lately which tells us the present Packer owned hog weight state of affairs is a bullish signal.
  • A Gallup ballot launched final week signifies 4% of Individuals establish as Vegetarians and 1% as Vegans (5% whole). The identical ballot in 2001 indicated 6% whole. Excellent news vegetarianism isn’t rising possibly even declining. Individuals who recognized as Liberals are 9%, Moderates 3%, Conservatives 3%. Males 2% and Ladies 6%. Pork Producers we guess are 0%. Is it any marvel with solely 5% of the inhabitants that corporations like Past Meat have gassed a lot cash chasing such a small market share. Now as an trade we should give attention to the 95% of meat eaters and ship them predictable higher tasting Pork. Give them no cause to choose tofu.
  • Decrease Pork manufacturing (-9%) and better hog costs within the European Union has led to a 17% decline yr over yr (January-June) in Pork Exports. The EU decline is about 340,000 metric tonnes (January-June). The U.S. Pork exports yr up to now are up 65,000 metric tonnes. We anticipate U.S. Pork exports to proceed working increased than final yr for the remainder of 2023. Whereas EU will proceed decrease from decrease pork manufacturing and better hog costs. At the moment European hogs are over $50 per head increased than U.S. hogs. Arbitrage.
  • The monetary losses in North America and China proceed to be giant. Monetary studies from public pig corporations point out firm losses within the a number of tens of millions. These losses usually are not solely a mirrored image of their very own companies however of the trade as a complete. Many now who skilled the 1998 debacle say that is worse. In our travels all we meet have felt the ache, however in addition they acknowledge if lean hog futures are right from September – April there could possibly be a median additional lack of $20 per head farrow to complete. This state of affairs actually dampens a lot optimism and bullishness. Our opinion is we anticipate hog costs to be increased than the futures point out with much less hogs coming to slaughter December and on coupled with even decrease Beef manufacturing.


The hog trade has misplaced billions of {dollars} in North America and China. Everyone knows what occurs on this state of affairs much less pigs. Financial actuality in hogs the decrease the low the upper the excessive. It’s not if however when this market takes off. Final Friday U.S. Alternative Beef cut-outs $3.17 lb. U.S. Pork cut-outs 93.42¢ lb. An enormous distinction. As Beef provide continues to plummet within the coming months the Beef worth can be increased with decrease provide it could possibly’t do something however pull Pork costs increased. Can’t be quickly sufficient. Is it the darkish earlier than the daybreak?


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