US Midwest hogs trading steady to up $2; supply down, demand up
June 13 (Reuters) - Cash hogs around the U.S. Midwest traded steady to $2 per cwt higher on Thursday as supplies tightened and packer demand rose, dealers said. - Packers were paying up for hogs amid seasonally tight supply. "Packers are looking to buy more hogs than are available, so prices are trending higher," an Illinois dealer said. - Packers were seen cutting slaughter numbers amid rising prices, sinking cash margins, and tightening supply, an Indiana dealer said. - From Monday to Wednesday, packers processed 1.197 million hogs, down 20,000 from a week earlier, based on USDA estimates.
- Dealers commented that supplies will tighten further, yet prices are expected to top out by the end of this week. - Some of the drop off in supply is attributed to Porcine Epidemic Diarrhea Virus (PEDV), which continues to spread. - News of additional PEDV breakouts continue, but actual solid numbers are difficult to come by, a market source said. - October and December futures seem to be ignoring the possibility of a PEDV hole, he said. - The deferred months have rallied nicely. "Technically, futures are overbought on most contracts, but open interest has increased nicely on the rally, which is often a positive sign," the source said. - For PEDV updates see: (http://vetmed.iastate.edu/vdpam/disease-topics/porcine-epidemic-diarrhea-ped-di a g n o s t i c - t e s t i n g ) - U.S. Department of Agriculture on Thursday estimated average cash margins at negative $9.45 per head, compared with Wednesday's negative $7.10, and negative $5.35 a week ago, according to HedgersEdge.com.. - USDA late on Wednesday quoted the pork carcass cutout value up for the fifth consecutive day, at $101.26 per cwt, $1.96 higher than the previous day. - Iowa/southern Minnesota hogs traded steady to $1.50 higher at about $76.50 per cwt delivered to packing plants. - Illinois hogs were $2 higher at about $78 per cwt delivered to plants. - Indiana hogs were $2 higher at approximately $74 per cwt delivered to plants and $73 per cwt at country points. - Northwest Ohio hogs were $2 higher at about $76 delivered to plants and about $73 at country points.
(Reporting by Alyce Hinton; Editing by Maureen Bavdek)