Pork: Net sales of 20,300 MT for 2022 primarily for Mexico (16,900 MT, including decreases of 300 MT), China (5,600 MT, including decreases of 100 MT), South Korea (1,400 MT, including decreases of 200 MT), Colombia (900 MT, including decreases of 100 MT), and the Dominican Republic (800 MT), were offset by reductions for Australia (3,500 MT), Japan (2,600 MT), and Canada (400 MT). Exports of 30,700 MT were primarily to Mexico (14,300 MT), China (4,200 MT), Japan (3,500 MT), South Korea (2,500 MT), and Canada (2,100 MT).
The market remains in an uptrend however the divergence between the cash and cutout are concerning at these levels. Packer margins are being compressed during a time of year they expect expansion. The Hams are well supported while the rest of the complex is sluggish, led by bellies, loins and butts.
The cash hogs are mostly steady as we enter the last two days of the week. Packers should have next week’s kill taken care of and it is onto week 45. We are still working on that week’s Saturday kill.
Technically, we are watching for any closes below the previous day’s lows for reversal type action.