FEEDSTUFFS PRECISION PORK Market Report – June 5

This is the second year in a row that the hog industry has not
gathered in Des Moines, Iowa, for everything pork. Some are
certainly wondering what's the next thing that can possibly be
thrown into this flock of black swans? That said, Dave Bauer,
market analyst with Provimi, reports that this week is quite
possibly a turning point in the pig business with much success
being seen at the packer level. The industry is now approaching
the 85-90% slaughter levels of pre-COVID capacity. This rise in
run rates has been better than many expected and will eat through
the surplus of market-ready hogs that has been building for
weeks. The industry, he says, appears to be reaching a historic
point that had been predicted for weeks, if not months, into the
future. At the same time, it is no secret pigs are being
euthanized to help reduce this surplus. In this episode, Bauer
walks us through a couple of scenarios related to head kill and
what they might mean to the backlog of hogs.
 


Bauer further explains that the measure of profitability, or the
lack of, only becomes a factor if hogs get slaughtered. The range
of returns for producers is still easily $50 per head, depending
on the plant a producer can get their hogs into and the market
that those hogs are being priced on. 

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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