August lean hog futures prices have backed well down from the June high, to begin to suggest a market top is in place. Cash hog and beef market fundamentals appear to have topped seasonally. The latest CME lean hog index is down 77 cents to $110.99 as of June 30. Pork cutout has shown weakness recently as well, falling another $3.07 to $112.30 on Tuesday, led by weakness in butts, bellies and ribs. Cutout is now $10.81 below the June 24 peak. Last week’s USDA Hogs & Pigs Report favored the bearish camp. Also, the lean hog futures market appears to have topped right around the annual low in hog slaughter.
Turkey shuts livestock markets nationwide amid FMD outbreak
Turkey has temporarily closed all livestock markets across the country to halt the spread of a highly contagious new serotype of foot and mouth disease (FMD), the ag ministry announced. The outbreak intensified following Eid al-Adha, when the traditional slaughter of animals increased livestock movement and heightened transmission risks. Authorities are deploying vaccination teams nationwide and pledged to gradually lift restrictions once the entire livestock population is immunized against the new FMD strain. Officials emphasized the temporary closures will not disrupt meat or dairy supplies and are necessary to safeguard animal health and protect the agricultural sector.
US Supreme Court declines to hear a challenge from Iowa Pork Producers Association seeking to overturn California’s Proposition 12
The Court’s action effectively allows the law’s animal welfare standards for pork sold in California to remain in place. The Court did not provide an explanation for its decision, though Justice Brett Kavanaugh indicated he would have granted review.
Proposition 12, passed by California voters in 2018, prohibits the sale of uncooked pork in the state unless the animals were raised according to specific animal welfare requirements, regardless of where they are produced. Pork producers and several states have argued that the law places an unfair burden on out-of-state producers and violates the Commerce Clause of the U.S. Constitution. The Supreme Court previously upheld the law in a 2023 decision, ruling it did not violate the Commerce Clause, and this latest denial of certiorari leaves that ruling in place.