DJ US Cash Hogs Pre-Open: Flat-Lower; Uncertain Demand, Weather

Mar 03, 2008 (Dow Jones Commodities News via Comtex) --

By Curt Thacker

Of DOW JONES NEWSWIRES

KANSAS CITY (Dow Jones)--The Midwest direct hog markets Monday are called flat to as much as $1 per hundredweight lower on demand uncertainty along with reports of wintry weather in parts of the region.

Livestock dealers and market managers report slick roads in the southern half of Iowa and northern Missouri due to freezing rain or a mix with snow. Heavy rain is falling across central Illinois but that is expected to turn over to snow later in the day, market managers said.

However, most plants reportedly have adequate supplies for much of the week, so unless the weather conditions trim marketings, prices could be under pressure, the dealers and managers said.

Demand for pork at the wholesale level is described as slow due to the large supplies that are available despite a seasonal decline in hog slaughter. However, last week's slaughter was up 15.3% from a year ago, mainly due to a reduced slaughter that week last year caused by a massive winter storm across the western corn belt.

Some analysts and dealers said the hog market may be flat to weak throughout the first half of the month ahead of the Easter holiday.

The U.S. Department of Agriculture's pork cutout value Friday was off $0.18 per hundredweight to $60.05.

The Dow Jones packer margin index for Friday was a plus $2.00 per head, compared with plus $3.18 the previous day.

The terminal markets are called steady to lower with tops from $35 to $38 on a live basis.

The Chicago Mercantile Exchange two-day lean hog index for Thursday was 59.36 cents per pound, down 0.54 cent from the previous day.

-By Curt Thacker; Dow Jones Newswires; 913-322-5178; curt.thacker@dowjones.com

(END) Dow Jones Newswires

03-03-08 0841ET

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