USA Market Report
Allan Bentley, Sales Manager, Genesus Genetics
The 4th quarter in the hog production business has always been a challenge.
Summer highs and winter lows is almost always guarantee with December hogs putting in new lows around $45. That same December board was trading around $65 last winter, $20 dollars less makes a big difference. I would say they have all the negativity priced into the market.
I have looked at charts and it does not take an expert to read into what they look like. We will get this trade situation corrected and back on track. Hopefully better deals will be made and in the long run it will be beneficial for pork producers.
In the meantime, we seem to be taking the brunt of the pain in these world trade negotiations. Markets over react to negativity and push prices lower than what supply and demand dictate. I think we are at those levels now. When we resolve these trade issues and that will happen, prices will rebound quickly.
As for cash hogs right now. Packers are doing everything they can to protect those margins. Pigs are backed up and it is not uncommon to be told to bring your pigs in 3 weeks from now, that is a little bothersome for the first week in August.
Here would be my thought if the president would listen to me:
Buy the pork in storage with the money collected by his tariffs and give it away to…………
Unfortunately, I don’t think President Trump reads my market commentary!