Livestock Marketing Information Center

Current Situation and Analysis
Last Updated: 3/30/2015
HOGS AND PIGS REPORT: SURGE IN NUMBERS OF MARKET HOGS

      In recent months, all meat and poultry sectors have been focusing on the ramping-up of pork and broiler output. How much U.S. prices drop in those two sectors will be driven by production increases and to some extent should even pressure prices in other sectors like beef. USDA-NASS released the latest quarterly survey of hog producers on Friday March 27th. The report indicated a larger supply of hogs in the pipeline than the prior report (as of December 1, 2014), but was largely in line with the pre-report estimates.


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COLD STORAGE UPDATE

      USDA-NASS released the February Cold Storage report on March 23rd. All protein products in cold storage, except turkey, were above their respective year ago and 5-year average levels. Compared to February of 2014, beef stocks increased 20%, pork up 5%, poultry up 7%, and lamb/mutton up 40%.  For a look back, during 2014, pork stocks tracked below year ago levels from March on and beef in cold storage was below year ago and 5-year average volume for the duration of 2014.


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BEEF PERSPECTIVE: FEEDLOT, PACKER, AND RETAIL

      Profit and margin calculations help roughly gauge the economic status of feedlots, packers, and retailers. LMIC calculates the profit (or loss) of a Southern Plains commercial feedlot as the sale price per cwt. of a finished steer less all costs of production including: feeder animal cost, yardage, death loss, and an interest charge on the animal. For packers and retailers, average margins are calculated, but these margins are not profits; they simply calculate a difference between the major purchased input (e.g. live cattle for the packer) and an end-product sale price.


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