Margins have been blended over the primary part of November, deteriorating somewhat in within sight sessions whilst a bit of less assailable additional out at the curve. Each corn and hog costs have been fairly flat over the last couple weeks whilst soybean meal endured to increase its rally according to rising considerations of drought in key soybean manufacturing areas of Brazil. Greater hog slaughter and red meat manufacturing has stored the marketplace in test as provides are good enough, and consumers seem reluctant to position provides in chilly garage because of call for considerations and higher wearing prices. Hog slaughter closing week of two.576 million head was once down 100,000 from the former week however 3% upper than a yr in the past. Estimated red meat manufacturing closing week of 546.1 million kilos was once 1.6% upper than a yr in the past even though carcass weights were expanding which might revise this upper. Cutout values have held up neatly lately with beef up from the butt and picnic primals, whilst ham and stomach primal
efficiency will probably be essential for the red meat cutout thru the rest of This fall. September red meat exports have been estimated at 175,101 MT that have been very similar to closing yr and higher than anticipated according to weekly information portending a 5% drop from 2022. USDA reported that red meat exports to Mexico have been up 14% from closing yr at 75,677 MT whilst exports to Canada have been 13% upper than closing yr at 2,466 MT. Mixed exports to those two markets accounted for 55% of overall U.S. red meat exports for the month whilst exports to key Asian markets declined through double digits from closing yr and now constitute 26% of the per month overall as opposed to 43% ten years in the past and 60% two decades in the past. Our purchasers proceed so as to add margin protection in deferred advertising and marketing sessions across the seventieth percentile of historic profitability with versatile value methods.
The Hog Margin calculation assumes that 73 lbs of soybean meal and 5.3 bushels of corn are required to provide 100 lean hog lbs. Further assumed prices come with $44 in step with cwt for different feed and non-feed bills.