◂ Event Timeline

Aug 1, 2016REPORTUS

More shackle spaces will squeeze margins to benefit producers, consumers

Packer margins are expected to tighten as new packing plants are built and fall hog supplies stay large. Cash hog prices near $83 were cited as below recent futures levels after a sharp weekly drop in the cutout, led by bellies and hams.

WHY IT MATTERS

Large hog supplies and new slaughter capacity point to softer hog and pork prices, which weighs on demand for feed used in hog production.

AFFECTSLean Hogs▼

SOURCE
nationalhogfarmer.comSteve MeyerAug 1, 2016

Price reaction & history

Lean Hogs▼bearishSO FAR1d -0.5%5d -2.5%20d -10.2%

After 159 past bearish report events, Lean Hogs moved a median -0.2% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +1.0% over 20.

Nov 23, 2021Input Costs Will Continue to Challenge Livestock Producers Into 2022-2.2%
May 21, 20182019 could squeeze livestock profitability even more - Brownfield Ag News+0.2%
Feb 28, 2019Hog producers continue to ramp up production, despite negative returns+2.0%
Jun 22, 2018Why hog prices will be pressured in the second half: USDA-0.2%
Sep 24, 2018Rabobank report: Rising volatility will challenge industry margins - Poultry News+5.6%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

Linked price moves

Lean Hogs-6.9%5 periods to Aug 1, 2016-3.3σ
Cash hogs well below futures after a sharp cutout drop, plus large fall supplies, signal downward pressure on futures.

Lean Hogs HOGS · GP ▸

——— · ·

Loading…