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Spread Between Cash Hogs & Pork Narrowing


Similar to the past 4 weeks  packers last week bought cattle $138.00 to $139.00. Dressed cattle sold mostly for $222.00 but there were loads going as high as $228.00 in the Midwest. There were cattle in the Midwest selling up to $142.00 with a very few loads up to $143.00.

Feb and March, spec spread traders widened spreads and now they are narrowing the spreads. To add to the negativity, the pork cutout has been dropping and for the packer, the spread between cash hogs and pork futures is narrowing. Pork is losing to hogs and when this happens, packer margins turn negative.

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