Hog Margin Watch experiences are offered by CIH. Click on right here to see CIH Hog Companies.
Margins deteriorated over the primary half of October as hog costs declined whereas feed prices held comparatively regular. Pork manufacturing has been rising over the previous a number of weeks as each hog slaughter and harvest weights tick seasonally larger and have begun to outpace year- in the past comparisons. Whereas the federal government shutdown has brought on a disruption in market reporting with USDA’s October WASDE report and different publications canceled, solely a small variety of USDA-AMS staff had been furloughed whereas different departments noticed extra important disruptions. Preliminary estimates point out final week’s slaughter totaled round 2.577 million head, slightly below the identical week final 12 months whereas over the previous 4 weeks ending October 11, hog slaughter is estimated to be simply above a 12 months in the past and according to the newest stock ranges within the September Hogs and Pig report. Necessary worth reporting knowledge additionally signifies that slaughter weights final week had been up 1% from a 12 months in the past and proceed to pattern larger. The pork cutout has been trending decrease over the previous few weeks however at $103.76/cwt., stays $8.32 or 8.7% larger than a 12 months in the past. The stomach primal which has held up the cutout worth by way of many of the summer time has been succumbing to strain with elevated seasonal provide and is now 5.6% under final 12 months. The ham primal ought to begin carrying extra of the load as we head in the direction of the vacations and continued sturdy demand from Mexico in addition to report turkey costs and traditionally excessive beef costs are supportive options for the market. Our shoppers have benefited from including protection just lately in 2026 with traditionally sturdy margin alternatives utilizing versatile worth methods to permit for extra margin enchancment over time.
The Hog Margin calculation assumes that 73 lbs of soybean meal and 5.3 bushels of corn are required to provide 100 lean hog lbs. Further assumed prices embrace $44 per cwt for different feed and non-feed bills.
Hog Margin Watch experiences are offered by CIH. Click on right here to see CIH Hog Companies.
