Week's US Hog, Cattle Markets Move In Opposite Directions
US - The U.S. hog and cattle markets were moving in opposite directions this week, with cash hog prices gaining sharply while cattle and beef prices were weaker.
8 November 2004
3 minute read
Based on the U.S. Department of Agriculture's weighted averages and the terminals, or key auction markets, hog prices this week advanced from 7% to 10%, depending on the location. During the last 10 years, prices in the first week of November have declined 70% of the time.
Normally, seasonally larger supplies and easing demand from retailers ahead of the Thanksgiving Day holiday pressure hog prices in early November. This year, however, has been anything but normal for the U.S. hog markets. Prices have been near historic highs while pork production is expected to easily set a new record high.
But the week wasn't so kind to the cattle and beef markets. Wholesale boxed beef prices have fallen for eight consecutive days, and this week alone beef prices declined about $8.75 for choice and $7.80 for select.
Cash cattle in Nebraska this week traded $4.00 to $5.00 lower on a dressed basis, with a few as much as $6.00 to $7.00 below the bulk of last week's sales at mostly $134.00.
Live-weight based cattle trades in Kansas on Friday, although still in light volume as of 1330 CT (1930 GMT) were at mostly $82.00, down mostly $3.00 from a week ago. No sales had been reported on a live basis in the Texas Panhandle at that time.
This weeks estimated slaughters, combined meat production
This week's cattle slaughter was estimated at 586,000 head, compared with 642,000 a week ago and 604,000 a year ago. Year-to-date cattle slaughter is estimated at 27.619 million head, down 9.4% from a year ago.
Hog slaughter this week was estimated at 2.096 million head, compared with 2.074 million a week ago and 2.156 million a year ago. Hog slaughter for the year to date is estimated at 86.268 million, up 2.5% from a year ago.
This week's combined meat production - for beef and veal, pork and lamb/mutton - was estimated at 875.5 million pounds, versus 914.9 million last week and 884.9 million a year ago. Combined meat output for the year is down 3.6% from a year ago.
Broiler slaughter this week was estimated at 160.592 million head, compared with 160.527 million a week ago and 158.112 million a year ago.
Source: eFeedLink - 8th November 2004
