FEEDSTUFFS PRECISION PORK Market Report - April 17

In this week’s market recap, podcast host and Provimi market
analyst Dave Bauer discusses pork exports for the week and talks
about the rare two-headed black Swan - the first head being that
of our consumer-led economy being sheltered from eating out and
second being that of the domestic supply chain being backlogged
by kinks in logistics and packaging. If not for record setting,
U.S. pork exports, one could estimate current cash prices for
hogs to be yet another $5 or $10/cwt., or even more, below
today's prices.

“I'll remind everyone that there is plenty of meat and food out
there to refill store shelves and in an effort to help rectify
some of the supply chain issues, USDA did announce this week that
it will ease labeling requirements covering fresh and frozen
produce, meat, fish and certain nuts aligned for products that
have been packaged for food service operators to now be diverted
to retail outlets,” Bauer notes. This effort will start on
Monday, April 20th, and it's to run for approximately 60 days. Ag
secretary Sonny Perdue also announced plans this week to buy milk
and meat from U.S. farmers as part of an initial relief package
designed to help offset some of the impacts being felt at the
farm level.

On the topic of forward profitability, Baurer advises not to make
too many long-term decisions based on today's forward curve. Over
the next 30 days or so, we could see drastic changes to current
pricing structures, and although there will still be difficult
weeks ahead, we'll likely be working through the toughest parts
in the next few weeks.

And what should we be thinking about for next week? Bauer says
packer warnings for producers to be ready to slow down
performance due to COVID-19 creating slowdowns or even closures
at the plant level are now upon us and efforts to reduce weight
to market have begun in earnest. Bauer is advising that you focus
on creating better production efficiency in your system, lean on
your suppliers for help and finding ways to reduce tonnage to the
market and be diligent in creating your team for success. These
are unusual times and it will pay dividends to be well
prepared. 

Feedstuffs Precision Pork is about giving you 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
in more depth, just ASK DAVE. 

Thanks for following and, as always, make sure you plan today for
tomorrow’s success.

Follow Feedstuffs Precision Pork on your favorite podcast
platform or find it on www.Feedstuffs.com and
www.NationalHogFarmer.com.