# 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.

- Date: 2016-08-01 · published 2016-08-01T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/11074-more-shackle-spaces-will-squeeze-margins-to-benefit-producers-consumers
- Commodities: [Lean Hogs](https://feedsoft.ai/c/HOGS.md)

## 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.

## Read by commodity

- HOGS: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| HOGS | 2016-08-01 | 5 | -6.9% | -3.3 | Cash hogs well below futures after a sharp cutout drop, plus large fall supplies, signal downward pressure on futures. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| HOGS | 2021-11-23 | [Input Costs Will Continue to Challenge Livestock Producers Into 2022](https://feedsoft.ai/events/44171-input-costs-will-continue-to-challenge-livestock-producers-into-2022.md) | -2.2% | +5.7% |
| HOGS | 2018-05-21 | [2019 could squeeze livestock profitability even more - Brownfield Ag News](https://feedsoft.ai/events/65128-2019-could-squeeze-livestock-profitability-even-more-brownfield-ag-news.md) | +0.2% | +13.7% |
| HOGS | 2019-02-28 | [Hog producers continue to ramp up production, despite negative returns](https://feedsoft.ai/events/60733-hog-producers-continue-to-ramp-up-production-despite-negative-returns.md) | +2.0% | +36.1% |
| HOGS | 2018-06-22 | [Why hog prices will be pressured in the second half: USDA](https://feedsoft.ai/events/64666-why-hog-prices-will-be-pressured-in-the-second-half-usda.md) | -0.2% | -12.9% |
| HOGS | 2018-09-24 | [Rabobank report: Rising volatility will challenge industry margins - Poultry News](https://feedsoft.ai/events/63198-rabobank-report-rising-volatility-will-challenge-industry-margins-poultry-news.md) | +5.6% | -4.1% |

## Sources

- nationalhogfarmer.com: https://www.nationalhogfarmer.com/market-news/large-fall-hog-supplies-will-keep-packers-in-the-driver-s-seat

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.