Weekly Livestock Market Update with Scott Brown, July 2nd 2018

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Some highlights from this week’s Weekly Livestock Market Update: – This week in markets – Cash hogs are $1.50 lower for the week, while lean hog futures were up $2.75 for the week. Pork cutout value was up over $2.00 this week and at the highest level since August of 2017. It was a strong week for bellies, which ended up $.08 higher on the week. All cutouts were higher with the exception of the ribs. On the cattle side, fed cattle prices were $3.30 lower this week, while feeder cattle sold steady to $3 higher for the week. Current live cattle futures are up $.65 for the week and current feeder cattle futures contract closed a little over $2 higher for the week. This week’s moves higher are pretty impressive considering outside pressure. Choice boxed beef price down $3.40 this week, driven by lower loins, briskets, and ribs. – Hogs and Pigs report – The 110,000 increase in sow inventory since the previous quarter is the largest increase since June of 1997. Breeding inventory was up 3.5 percent, which is well above pre-report estimates. Even the revisions added more pigs to the mix, with the fourth quarter pigs crop increasing by 225,000 head. Most important to watch moving forward is farrowing intentions, which did fall within the range of pre-report estimates, but could still be much larger than reported. Barrow and gilt weights will need to be watched closely throughout the remainder of the year as that might be a shock absorber of the increase in hogs and pigs. – Acreage Report – The USDA released its Acreage Report and corn acres came in at 89.1 million acres, slightly above pre-report estimate and soybeans came in at 89.6 million acres, right near pre-report estimates. Hay acres came in at 55.1 million acres, a 1.3 million acre increase from last year. – Restaurant Performance Index – Generally the index fell slightly from April to May. But the 101.2 still indicates some growth. The Current Customer Traffic Index remains weak at 98.3. – Farm Bill – The Senate passed its version of the Farm Bill. – Next week’s reports – Jobs report and the 4th of July holiday.

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