Pork Comentary, March 20, 2018
Jim Long, President-CEO, Genesus Inc.
Some Market Observations
Are US hog weights starting to go down?
- Last week everyday, Monday toThursday, had lower weights then the week before. To get stronger hog prices we must get to lower weights and/or lower hog marketing numbers. We believe we are near the low price for winter-spring.
- US pork cut-outs last week were at 72.50 ¢ lb. To get hog prices up from the mid 60’s, pork cut-outs need to go higher. They will go higher as hog numbers and/or weights decline.
- Small pig prices remain strong. US average Cash early weans were $50.44 last week. Strong prices as early weans are for early full marketing. It appears demand for small pigs is quite positive for the sellers.
- Summer lean hog futures are around 80¢ lb; at one point they were in the 85¢ lb range.We still expect the summer market to rebound and reach 90¢ lb. Reason – hog supply will seasonally decline, plenty of packer capacity will lead to next to zero gross packer margins.
Domestic and Export pork demand remains good.
Our scenario could be wrong but its what we think.
This coming week we will be in Russia. We will report our Russia market observations in next weeks commentary.
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Nutrition Specifications Guidelines
Genesus continues on maximizing genetic improvement of economically important traits and optimum cost per pound of gain while maintaining a product that has the best eating experience.
Genesus has focused on maintaining feed intake at status quo and selecting for pigs that grow faster. This allows the Genesus pig to improve on FCR, yet handle stressors it encounters. (i.e. diseases challenge, out of feed events, management, etc.)
Our goal is to support our clients achieve the the most of production at a lower cost. Understanding how to feed an animal to its appetite and nutritional needs is critical to profitability.
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