# Packer margins deep in the red

> Packer margins for hogs are deep in the red because the pork cutout has lagged negotiated hog prices, which have traded between $100 and $105 per cwt this spring. Cutout values have been held at $100 to $110 per cwt and have declined slightly since their March peak. Reduced slaughter has not been enough to lift hog prices to last summer's highs.

- Date: 2022-05-23 · published 2022-05-23T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/41554-packer-margins-deep-in-the-red
- Commodities: [Lean Hogs](https://feedsoft.ai/c/HOGS.md)

## Why it matters

Negative packer margins typically cut slaughter pace and hog demand, limiting hog price rallies until the cutout recovers.

## Read by commodity

- HOGS: bearish ▼

## Sources

- nationalhogfarmer.com: https://www.nationalhogfarmer.com/market-news/packer-margins-deep-in-the-red

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