Cattle and Hog Markets Feel Pressure from Increased Supply and Imports

Cattle and hog markets in the US are facing pressure from increased supply and imports. Packers have seen improved margins, leading to higher production levels, but this has put downward pressure on cattle prices. The estimated harvest of 542,000 head was the largest since February.

The announcement to import 660 million pounds of beef is still making headlines and impacting the market. This plan could further pressure some cattle prices at a time when they are already working lower. The supply of domestic grind is expected to increase during the 90-day period, which may not be enough to offset the imports.

Higher corn prices will affect feedlot margins, causing record cattle weights to decrease and put less beef on the market. This could have a positive effect on demand for cattle in the long run. Cargill announced it will begin harvesting cattle at its Fort Morgan, Colorado location next Tuesday, which is expected to increase demand.