Packers are trying to break the cash as about 150,000 hogs have been backed up due to the weather in the hog belt this week. No matter, they will be shipped next week but that’s not stopping packers from breaking the cash. No one ever said packers were nice guys.
Product jumped higher yesterday mostly driven by a firm trade in retail items. Users are expected to show restraint in chasing higher product with the talk of hogs backed up. What many are not realizing is how incredibly cheap the product is.
Finally, reports on the ASF situation in China indicate that this disease will virtually wipe out the small courtyard hog producer in China. I’ve been saying this for a couple of months now. In this same article, an analyst from Rabobank is quoted and they’re projecting Chinese pork production to drop by 20% this year. This is extremely bullish should that occur. Small courtyard producers make up from 30% to 40% of production in China.
Good morning DH, above is part of what I received from Dennis this morning.