FEEDSTUFFS PRECISION PORK Market Report - May 8
These are difficult times for plant operators as they try their best to guess what numbers they might hit for a day. They are often finding themselves starting their day not knowing what kill numbers will look like and, for that matter, if enough workers will even show up to run their line, says Provimi market analyst Dave Bauer. The run rates for this past week, and through this past Monday, started off down 9% from the previous Monday. Tuesday was up 7%, Wednesday up slightly over a 17% and Thursday was up 12.5%. With some other capacity estimated to come online Friday and Saturday, Bauer estimates this week’s kill would be a 15% increase over last week and a large step in the right direction for pork exports.In this episode, we also take a look at this week’s double whammy for pork weekly exports. Weekly net exports of 47,500 metric tons fell 6% below that of last week and 1% below the four-week average. China's 40,200 metric tons was 85% of that total. What about the cutout? Bauer explains that as well. Estimated returns for today's market hogs based on returns to the CMI index sit around a $10 to $15 per head loss if producers can get them killed. Average profitability over the next 12 months has now risen to a loss of $10 per head, which is a great improvement from the monthly per head losses of $35 per head seen just a few weeks ago. These are uncertain times and it will pay dividends to be well-prepared. If you have questions on this week's recap or want to discuss something not covered, feel free to ASK DAVE at David_Bauer@cargill.com. Thanks for listening and make sure you plan today for tomorrow’s success.Follow Feedstuffs Precision Pork on your favorite podcast platform or find it on www.Feedstuffs.com and www.NationalHogFarmer.com.