In this file:

 

·         U.S. pig slaughtering hits five-month low as Omicron spreads 

… Processors slaughtered an estimated 433,000 hogs on Wednesday, a five-month low that is down 12% from a year ago…

 

·         Hog Futures Slump Following Reports of Processing Bottlenecks

·         COVID Related Processing Plant Constraints Influencing Hog Markets

 

·         Hog futures higher on an oversold bounce

 ... Lean hog futures closed higher on oversold signals with additional support from higher pork values… Pork values closed higher up $2.84 at $84.46…

 

 

U.S. pig slaughtering hits five-month low as Omicron spreads

 

Tom Polansek, Reuters

via Financial Post (Canada) - Jan 12, 2022 

 

CHICAGO — Chicago Mercantile Exchange lean hog futures rose on bargain buying on Wednesday, traders said, though U.S. pig slaughtering sank to its lowest level since August as rising cases of the Omicron coronavirus variant hit meat plants.

 

Live cattle and feeder cattle futures slumped as traders remain concerned that the highly contagious variant is causing more staffing shortages, limiting livestock slaughtering.

 

COVID-19 hospitalizations in the United States have increased by about 33% and deaths are up by about 40% from a week earlier, the head of the U.S. Centers for Disease Control and Prevention said on Wednesday.

 

Meatpacking, an early epicenter of the pandemic in 2020, is among the sectors being disrupted by the surge in cases.

 

Processors slaughtered an estimated 433,000 hogs on Wednesday, a five-month low that is down 12% from a year ago, the U.S. Department of Agriculture said. Processors slaughtered an estimated 114,000 cattle, down about 3% from last year, the agency said...

 

more

https://financialpost.com/pmn/business-pmn/u-s-pig-slaughtering-hits-five-month-low-as-omicron-spreads

 

 

Hog Futures Slump Following Reports of Processing Bottlenecks

 

By Jennifer Shike, FarmJournal's Pork 

January 12, 2022

 

Hog futures have dropped this week as market participants have gone on the defensive following reports of lower-than-expected slaughter and ongoing processing bottlenecks.

 

Reuters reported on Monday that rising COVID-19 infections among U.S. workers have forced meat plants to slow production and the government to replace slaughterhouse inspectors.

 

“Slaughter data for the last few days appears to support this,” said Len Steiner, president of Steiner Consulting, in the Daily Livestock Report on Wednesday. “Last night USDA put hog slaughter at 458K, about 20-25K less than we would have expected. On Monday, hog slaughter was 448K head and we think for the week slaughter will be under 2.5 million. This is about 6.5% lower than the previous year.”

 

Cattle slaughter has been lower than expected as well, the report noted, with slaughter in the first two days at 227,000 head, about 5,000 head less than a year ago.

 

However, the hog slaughter slowdown does not appear consequential for the cash hog market, Steiner said.

 

“Last week we saw slaughter run light for much of the regular work week, but packers were able to make up some of the shortfall on Saturday. Also, the year-over-year decline is not that far off from what the December ‘Hog inventory’ report implied. A weekly slaughter of around 2.5 million head is about in line with supply available. No wonder, therefore, that cash hog values have held up well and hog weights have been in line with historical levels,” he said...

 

more, including links

https://www.porkbusiness.com/news/industry/hog-futures-slump-following-reports-processing-bottlenecks

 

 

COVID Related Processing Plant Constraints Influencing Hog Markets

 

Tyler Fulton - HAMS Marketing Services

Farmscape for January 12, 2022

 

The Director of Risk Management with HAMS Marketing Services says the impact of the global pandemic on pork processing capacity is one of the biggest factors driving hog markets.

 

In late 2021 slaughter hog production dropped, resulting in a decline in hog numbers and triggering a significant reduction of pork stocks, stimulating higher pork cut-out values.

 

Tyler Fulton, the Director of Risk Management with HAMS Marketing Services, says while that short supply is expected to continue, the global pandemic continues to influence the hog market.

 

Clip-Tyler Fulton-HAMS Marketing Services:

 

From a short-term perspective, what we're seeing is hog processing facilities dialing back their production levels simply because they've struggled to maintain a full labor force in the context of the Omicron variant.

 

We're seeing it fairly widespread, whether it be in the United States, in the Midwest where there's a ton of packing plants but also here in western Canada where, after the holidays, we've really seen things kind of dialed back.

 

It hasn't run into any major disruptions but we're going to have to move through and learn to work with these constraints if we're gong to continue to be current with hog supplies.

 

That's kind of what's happening on a short-term perspective.

 

Longer term, what we saw from the Hogs and Pigs Report was a general lack of any growth in market hog supplies for at least the next four months.

 

Looking further out the breeding herd is expected to increase and that will result likely in larger market hog volumes, as long as we can deal with the disease disruptions that have plagued the industry over the last year or so.

 

more

https://www.farmscape.com/f2ShowScript.aspx?i=27739&q=COVID+Related+Processing+Plant+Constraints+Influencing+Hog+Markets

 

 

Hog futures higher on an oversold bounce

 

By Meghan Grebner, Brownfield

January 12, 2022

 

... Lean hog futures closed higher on oversold signals with additional support from higher pork values.  February lean hogs closed $1 higher at $78.85 and April lean hogs closed $1.20 higher at $85.40.

 

Cash hogs closed lower with a moderate negotiated run.  The industry continues to monitor the availability of market-ready hogs.  For the most part, processors have been a little more aggressive in their procurement efforts recently.  Demand for US pork on the global market has been strong and that is expected to continue.  However, there is some long-term concern, which has put some pressure on prices.  Hog weights this week increased to 292.2 pounds, up from 291.4 pounds last week, but down from 293.1 pounds on the year. Barrows and gilts at the National Daily Direct closed $.92 lower with a base range of $62 to $70 with a weighted average of $66.07; the Iowa/Minnesota had a weighted average of $69.38; the Western Corn Belt had a weighted average of $69.17; the Eastern Corn Belt had a weighted average of $64.58.

 

Butcher hog prices at the Midwest cash markets are steady at $44. At Illinois, slaughter sow prices were steady with good demand for very heavy offerings at $31 to $46.  Barrows and gilts were steady with moderate demand for heavy offerings at $40 to $47.  Boars ranged from $15 to $22 and $10 to $15.

 

Pork values closed higher up $2.84 at $84.46.  Bellies and hams were both sharply higher.  Butts and picnics were both sharply lower.  Ribs and loins were lower. Estimated hog slaughter is 433,000 head – down 30,000 on the week and down 61,000 on the year...

 

more

https://brownfieldagnews.com/market-news/hog-futures-higher-on-an-oversold-bounce-3/