At a livestock industry conference last week, the main topic covered was outlook—both for feed and livestock/meat. However, the most lively discussions revolved around price reporting.
Mother Nature is playing tricks already with excessive rain, says Jerry Gulke, president of The Gulke Group. Add to that, farmers are cutting back on inputs. Too soon to tell, but maybe the nail isn't yet in farm bank account coffins!
The general negativity in the market feels frightening familiar to many producers. This week, all the ag markets were lower with the exception of cotton and soybean oil. The live cattle market, which lost more than $4 this week, "is like trying to catch a knife," says Jerry Gulke of the Gulke Group. "Producers really have to lock in a margin.
Pigs/litter have rebounded from the effects of PEDv. At 10.17, the December-February number is a record for the winter quarter. Hog inventory is back to 2013 levels.
It's certainly no secret slaughter has been running strong, in the mid-430,000 range in recent weeks, adding to expectations that numbers will be up in the report.
Traders spent the weekend digesting last week's Federal Reserve comments and Cattle on Feed; next week the biggies will be Cold Storage and Hogs & Pigs.
