What's ahead in regard to future profitability for the hog markets, market analyst Dave Bauer explores just that.
In today’s episode, Provimi market analyst Dave Bauer explores this month’s cold storage report and weekly pork exports. While the U.S. Department of Agriculture brought us two reports this week that futures have now interpreted as positive price, all prices didn't reflect strong gains as producer prices were only up in a range of 1% to 5%.
Strength in the pork cutout, Bauer says, is due to reduce chain speeds of roughly 25% to 30%. The resulting tightness in the pork output has increased competition for available pork supplies. Because these delays at the plant level have come just recently, the drawdown in March frozen supplies is simply strong exports and not likely supplies being pulled out of storage for current production decreases. At least, not just yet. What’s ahead for future and nearby profitability, Bauer explain. As, he notes, it takes a long time to turn an aircraft carrier.
These are uncertain times and it will pay dividends to be well prepared. Provimi strives to provide the information you need to run a more precise pork system. If you have questions on this week's recap or want to discuss something I didn't cover, reach out and ASK DAVE at Dave_Bauer@cargill.com. Thanks for listening and make sure you plan today for tomorrow’s success.
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