CHICAGO — U.S. packer bids for hogs in the cash markets have been reported in a wide range early Wednesday, with plants continuing to process loads secured earlier in the week after facing mechanical issues.
Dealers expect most prices to be $1.00 below the previous sales to $1.00 higher, and Tuesday's top prices ranged from $49 to $55 per hundredweight on a live basis, and from $62 to $72 per hundredweight on a carcass basis–a form of pricing that accounts for the meat yielded from the animal.
Gains in the wholesale pork market have stalled following a steady build since August, making packers cautious to avoid choking off demand from grocery and restaurant buyers. If retailers experience more difficulty passing on the pork costs to consumers, hog processors bid for available livestock more cautiously, so as not to eat into already-thin margins. Market watchers noted that four to five plants so far this week have expressed concerns that shifts could be dropped due to equipment or other temporary mechanical disruptions.
To read the rest of the story, please go to: Nasdaq
