December 27, 2007

US Cash Hogs: Steady to lower on light demand

Midwest direct hog prices on Wednesday are declared steady to lower on light demand this week.

Livestock dealers and market managers said most plants have majority of their supply needs on the books for this week.

However, some plants may need a few more loads to complete Friday and/or Saturday's slaughter schedules. More hogs may be offered for sale that there are openings left for the animals, which would weigh on prices.

Analysts and dealers said that a light slaughter on Monday and all plants being down on Tuesday would result in a smaller weekly total and cause a carry over into next week.

Wednesday's slaughter is expected to be a few thousand short due to the Morrell Sioux City, IA, plant working just one shift, according to dealers and market managers. The plant also operated one shift on Monday. 

The USDA's pork cutout for Friday was up US$0.43 per hundredweight at US$58.04.

The terminal markets are called steady to lower at the three locations that are open this week. Top prices are expected from US$30 to US$33.50 on a live basis.

The Dow Jones packer margin index for Friday was plus US$9.00 per head compared with US$6.84 the previous day.

The Chicago Mercantile Exchange two-day lean hog index for Thursday was US$54.17 per pound, down US$0.48 from the previous day.