|
Marcellus, Mi | It really dosen't make a lot of sense with beef prices being high. And i just read that the turkey supply was the tightest since 2003.
Retail knows they can buy it cheaper if they wait, so no real reason to buy to far ahead. That puts pressure on the cutout.
The negotiated price keeps dropping because very few hogs are bought on the cash market. So no real reason to bid higher for hogs if you can actually manipulate the market. ( The packer i sell to won't even buy hogs on the negotiated market )
The bright spot is export volume. Foreign markets know when to get a good deal.
Cold storage isn't even burdensome other than a few muscle cuts.
The only theory that sounds plasuable that i've heard is, liquidation in China and the EU. China reduced the sow herd by 4 million and EU is either having trouble with high grain prices or ASF (Spain). This is supposably putting extra supply on the world market. | |
|
Hog mkt. crash?
