DLR Projects More Pain for Producers

August 6, 2009 — 

The Chicago Mercantile Exchange's Daily Livestock Report (DLR) for August 5 is projecting deepening losses for pork producers for the remainder of 2009 and into 2010.

Based on rising projected feed costs and slow sow slaughter the DLR projects losses of $17.32/cwt for the remainder of 2009 and $12.41/cwt for the next 12 months. Projected cash prices for this fall will be below $50/cwt on a carcass basis ($37.50/cwt live weight) according to the report.

Sow slaughter continues to be slow at 20% lower than 2008 after deducting higher imports of Canadian sows. Gilt slaughter is slightly elevated indicating that sow herd reduction is occurring via decreased gilt retention.

Additional information and graphs are available on the DLR website.

Source: CME's Daily Livestock Report, 8/5/09