Lean Hog Commentary
Cash hog prices remain under pressure as supplies pick up slightly. Packers have adjusted work hours to deal with the loss of market ready hogs after PEDv hit hog herds. A major packer is closing several plants because of this reduced supply. The tightest hog supplies of the year are expected from now through early September.
Futures traders are anticipating hog numbers increasing by October, less processing capacity and demand damage due to high prices will impact packer demand and ultimately cash prices. Managed Money funds are carrying a sizeable long position. We expect volatile markets to continue. Watch chart patterns for clues to establishing positions.
USDA is proposing to amend the regulation governing the importation of pork from Mexico. Under this proposed rule, such pork…
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