August 14, 2007

US Cash Hogs Midday: Weak to US$1 lower; seen weak today

Cash hog prices in the Midwest Monday (August 13) are reported weak to US$1 per hundredweight lower on continued large supplies and slow buying interest to begin the week.

Market managers and livestock dealers said packer demand for hogs is light in most areas. There are adequate supplies available to the plants despite very hot temperatures in much of the western Corn Belt and parts of the eastern region as well, they said.

Station buyers said the hot temperatures and weaker bids together are limiting selling interest in the spot markets. However, packers appear to be getting enough hogs from the larger producers to maintain desired slaughter rates at the plants.

Buyers are bidding cautiously, and projections for prices Tuesday (August 14) are mostly weaker.

Three consecutive weeks with huge slaughters and prospects that the string will be extended to four weeks are weighing on prices, analysts and dealers said.

Prices at the terminal markets were steady to lower with tops from US$47 to US$51 on a live basis.