US hogs hit new lows - CME

Apr 17, 2023

Chicago Mercantile Exchange (CME) live cattle futures firmed on Wednesday on expectations for higher US cash prices this week, as lean hog futures set contract lows, Reuters reported, citing analysts.

Cash cattle were bid at about $168 per cwt in the southern Plains, roughly $1 higher than the bulk of trading last week, said Dennis Smith, commodity broker for Archer Financial Services. Meatpackers will need to pay more to strike deals, he said.

"If they want the cattle, they're going to have to bid higher than $168," Smith said, adding that prices may rise to $170 per cwt.

Meat processors slaughtered an estimated 123,000 cattle on Wednesday, down from 127,000 cattle a week ago and 124,000 cattle last year, the US Department of Agriculture (USDA) said.

The agency reported boxed beef prices rose, while HedgersEdge.com said processors' margins climbed to $80.15 per head of cattle from $59.15 per head on Tuesday and $52.45 per head a week ago.

April live cattle finished 0.800 cent stronger at 168.400 cents per pound, and June live cattle ended up 0.075 cent at 160.300 cents per pound.

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Video: Season 7, Episode 1: Managing Risk and Seeing Opportunities in U.S. Pork Production

Today’s episode features three guests discussing the similarities and differences between pork production in the United States and Brazil, along with strategies for managing risk in today’s industry while recognizing and acting on opportunities. First, Dr. Anne Caroline de Lara, executive manager of live pig production at Seara Alimentos, a JBS company in Brazil, is joined by Dr. Matthew Turner, head of operations for JBS Live Pork. Together, they discuss how labor, climate and ventilation challenges vary between Brazil and the United States, while underscoring their shared commitment to raising healthy pigs. They also point to lessons producers in both countries can take from one another’s systems and on-farm experiences. Then, Brady Reicks, risk manager at Reicks View Farms, shares his perspective on risk management, drawing from his background in markets and his transition into farming. He discusses how protecting margins varies by operation and offers practical approaches producers can use to make marketing and business decisions with greater confidence rather than hesitation.

Both conversations were recorded at recent industry events focused on swine livability, including the International Conference on Pig Livability and Iowa Swine Day.