# Processor margins pressured by high hog prices

> USDA economist Mildred Haley reported that November federally inspected hog slaughter was estimated at 10.9 million head, almost 2% below November 2021. Processors paid an average live equivalent price of $63.72/cwt for 51-52% lean hogs, about 17% higher than a year earlier, while the carcass cutout averaged $93.43/cwt, about 3% higher.

- Date: 2022-12-21 · published 2022-12-21T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/38368-processor-margins-pressured-by-high-hog-prices
- Commodities: [Lean Hogs](https://feedsoft.ai/c/HOGS.md), [Meat & Bone Meal](https://feedsoft.ai/c/MBM.md)

## Why it matters

Tighter hog supply lifted live hog costs faster than wholesale pork values, squeezing processor margins and supporting hog prices into early 2023.

## Read by commodity

- MBM: neutral
- HOGS: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| HOGS | 2022-12-09 | [High hog prices squeeze pork processors: USDA ERS - Swineweb.com - Complete Swine News, Markets, Commentary, and Technical Info](https://feedsoft.ai/events/38370-high-hog-prices-squeeze-pork-processors-usda-ers-swineweb-com-complete-swine.md) | -0.2% | -3.4% |
| HOGS | 2022-12-13 | [Processors’ Pinched: Paying Up For Live Hogs, Wholesale Prices Decline - Pork Business](https://feedsoft.ai/events/38369-processors-pinched-paying-up-for-live-hogs-wholesale-prices-decline-pork.md) | +2.0% | -3.6% |
| HOGS | 2021-05-12 | [6 Issues Driving Global Hog Prices - Pork Business](https://feedsoft.ai/events/47253-6-issues-driving-global-hog-prices-pork-business.md) | -0.5% | +7.6% |
| HOGS | 2021-03-16 | [Demand for hams and bellies driving hog prices](https://feedsoft.ai/events/48269-demand-for-hams-and-bellies-driving-hog-prices.md) | +4.0% | +12.9% |
| HOGS | 2024-03-19 | [Increased pork demand raises hog prices](https://feedsoft.ai/events/31347-increased-pork-demand-raises-hog-prices.md) | -0.6% | +8.4% |

## Sources

- feedstuffs.com: https://www.feedstuffs.com/livestock-and-poultry-market-news/processor-margins-pressured-by-high-hog-prices

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