Market analyst says reports indicate producers should remain cautious
It was a big Friday for USDA reports with both Cattle on Feed and Hogs and pigs numbers released.
The USDA’s Quarterly Hogs and Pigs report was pretty bullish as many segments of the report came in well below pre-report estimates.
University of Missouri livestock market analyst Scott Brown says producers need to consider some risk-management options, especially if hog futures take off on Monday. “There might be a time to take advantage of some of those higher prices yet again,” Scott says. “The prices we’ll see at the end of the day, it’s not just the supply side that’s gonna matter here. What does happen to demand in front of us?”
Cattle on Feed numbers also came out on Friday and while the on-feed number was very near the pre-report estimate, he tells Brownfield cattle placed in August was significantly higher than expected. “The drought going on in many parts of the country, I think there’s always that idea that if we can get them into the feed yard sooner and off of grass especially in those drought areas sure helps us,” he says. “We may have some of that playing into this.”
And while near-term prices might be pressured a little bit, Brown says he still thinks prices will find some strength in the not-so-distant future.