Market analyst Dennis Smith looks at key fundamentals that are impacting the current hog market, driven by processors, a surprise Trump election and the weight of market hogs.
Slaughter weights have been holding steady this fall. That is an indication that we haven’t created a backlog of hogs that will have to be worked through.
I think trade deals are a tough row to hoe with the new administration, the dollar will be strong, ag exports will be constrained by both trade and monetary policy.
Steady hog weights have been one factor in the cutout value finding some solid ground in the low-$70s during October and now into November.
Lean hog futures managed to stage a dramatic and impressive upside breakout, providing a near-perfect opportunity for hog producers to seek protection from a sharp downturn in prices.