FEEDSTUFFS PRECISION PORK Market Report – October 30

This has been a week of strong kills, logging another day on
Tuesday at 492,000 head. Packers continue to have high hopes each
day, aiming for those 2.7 million head weekly kills. Still, there
are some feelings that COVID fears may be creating concerns to
labor again, says Dave Bauer, senior market analyst with Provimi.
This latest resurgence of COVID cases in rural America, even
though more in the non-processing community, doesn't keep plant
workers from being concerned about being around
crowds. 

Over the past three Fridays, kills have averaged 487,000 head and
approximately 260,000 head over the past three Saturdays. With
those kinds of numbers this week, we would have a chance at 2.7
million head killed. That is, of course, if Thursdays 492,000
head estimate stands and isn't adjusted lower. Weekly runs of 2.7
million head seem to be getting harder to achieve, says Bauer.


Producer weights have plateaued over the past couple of weeks,
around 214 lb. and packer weights have backed off a pound or so.
There has been an abrupt correction to prices. Depending on how
the cutout finishes, the week will dictate packer appetite for
market hogs come Monday. Pork exports on Thursday, put net 2020
sales at 29,000 metric tons with 2021 new sales of 7,000 metric
tons, for a combined 35,000 metric tons of new forward sales.
Bauer says it been a great week, for sure, and all in the absence
of China only taking 2,500 metric tons of pork. What can we
expect from China in the near term? What’s ahead in terms of
profitability for producers? Bauer gives his thoughts in this
latest episode of Feedstuffs Precision Pork. 

These are uncertain times and it will pay dividends to be
well-prepared. If you have questions on this week’s recap or want
to discuss something not covered, feel free to ASK DAVE
at David_Bauer@cargill.com. Plan today for
tomorrow’s success.


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