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USA Hog Market

08 February 2016
Genesus - The first power in genetics

US - We hear this term (Rewarding the Market), but having a marketing plan means we need to pull the trigger, writes Allan Bentley, Sales & Service, Genesus.

At the time of my last market report cull sows were 10-15 cents a pound, I advised holding off on those cull sales as long as possible and cull sows are now at 35-40 cents. I think that market will continue higher but we need to reward the market and sell those conditioned sows, as they are the most valuable. As for lighter and thinner sows, I would hold them, if at all possible.

The June and July futures at the time of my last report were around 71 cents. That market has improved to almost $81.00. Depending on the basis that should bring back about $62.00/ live, which I believe that is a great place to start selling futures or forward contracting hogs.

Looking forward, the numbers say we will see 3% more chicken and 4% more beef, as for pork, I think we will keep the supply steady with last year.

There is no sow buildings going up anywhere that I know, a lot of talk, but a lot of foot dragging by lenders. The one market mover that I could see pushing cash hogs higher around June is the reports of a semen extender that has been suspected to cause born alive numbers to drop by 2-3 pigs. I hear most boar studs quit using it by Oct 1, 2015. Depending on the market share this extender had, it could cause a drop in numbers briefly this summer.

As for the 4th quarter futures, just like a 16 year old coming home at 2 am, I would not reward that behavior. It has gained about $2.00 but in comparison to June, I believe it has more potential. That is what my Dad always told me when he compared me to my sister.

To find out more about Genesus Genetics, please take the time to visit their website at .

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