September 25, 2007

US Cash Hogs: Big supply, weak pork weigh on prices

Slaughter hog prices across the Midwest are reported weak to as much as US$1.50 per hundredweight lower in the direct markets on Monday (September 24).

The terminal markets are also trading from steady to lower, with tops ranging from US$37.50 to US$43.00 on a live basis.

Livestock dealers and market managers said most plants are well supplied with hogs through midweek or beyond. A few were reportedly looking for additional loads for Monday or Tuesday after slaughtering large numbers of animals Saturday, but they were holding the line on prices. Others have nearly all the hogs needed for this week's slaughter already booked.

Daily gains in the finishing barns are said to be improved due to cooler average temperatures and an increased percentage of new-crop corn being used in the feed rations.

Market managers also said some producers booked an extra load or two for this week after average weights on hogs delivered Monday morning were heavier than expected in some cases. Producers are complaining about the low prices but also are concerned that the market could drop even further in October, so they are trying to stay current on marketings, the managers said.

Predictions for prices Tuesday are flat to weak.

The US Department of Agriculture reported light-volume sales and flat to weaker price indications in its midday pork market comments. Demand was light while offerings from packers were called moderate.