Demand has been driving the strong cash market we have seen this fall. Through the first half of 1999 compared to the same period in 1998, supplies decreased 1 percent and fed cattle prices were unchanged. However, in the third quarter supplies increased 3.7 percent in 1999 and fed cattle prices increased 8.9 percent. Weekly slaughter has averaged 720,000 head since mid August excluding Labor Day week. The Cattle on Feed report indicates that supplies will remain large into the first of next year.
Weights are about equal to a year ago.
However, weakening demand will quickly result in lower fed cattle bids as last June and October proves. Hog Prices Remain Strong Cash live hog prices have held relatively strong following the September USDA Hogs and Pigs report, in spite of larger than anticipated slaughter. Slaughter levels are running above year earlier levels and above the Hogs and Pigs report projections. Slaughter for the week ending October 16th is estimated at 2.109 million head, up 2.1 percent from the 2.066 million head in 1998. Since Labor Day, slaughter has totaled 10.211 million head for the past 5 weeks.