December 27

12/27 – Santa’s sleigh was a little short on beef and pork for 2022. In Thursday’s Cattle on Feed report, the USDA said Nov cattle marketings were up 5.3% from a year ago, while new placements were up 3.6%, resulting in a Dec 1 feedlot inventory that was down 0.4% from a year ago. The USDA is currently projecting a 3.2% decline in beef production for 2022. In last week’s quarterly Hogs and Pigs Report, the USDA said hog inventories on Dec 1 were 4.0% below a year ago. Hogs destined for market are running 4.4% below a year ago, and market-hogs in the 2 heaviest weight classes are 6.1% below a year ago - indicating that pork supplies will be tight in the first half of 2022. The USDA says pork output will drop 0.5% in 2022, on top of a 2.0% decline in 2021. Lean hog futures that averaged $75.28/cwt in Nov, are currently $83.23 and likely headed higher this week.