Soybean Complex (S · BO · SM) News

The lean hog futures price divided by the corn futures price. The simplest read on feed-cost pressure for the hog producer.

• Stress band, below 14. Corn is expensive relative to hogs. Producers lose money, cull sows, and future hog supply tightens six to twelve months out.
• Normal band, 14 to 20. Feed cost is manageable; herd size holds roughly steady.
• Fat margin band, above 20. Hogs rich relative to feed. Producers expand the herd and future supply loosens.

The 2008 ethanol boom compressed the ratio below 12 for months and triggered a wave of US herd liquidation. The 2016 to 2017 window held the ratio above 20 and the breeding herd expanded aggressively.

The pork carcass cutout composite minus the lean hog futures price, both in dollars per hundredweight. A rough read on what the packer earns per pound processed, before fixed costs. True packer margin accounts for yield around seventy-five percent, drop credit, and kill labor; this proxy captures direction, not level.

• Compressed, below $5. Packer margin tight. Packer bids aggressively for hogs to protect run rate. Supportive for Lean Hogs short-term.
• Normal, $5 to $25. Steady processing economics; no behavioral change at the packer.
• Fat, above $25. Packer margin elevated. Packer may reduce slaughter to lift basis and widen cutout further. Bearish Lean Hogs short-term, bullish cutout.

The clearest historical anchor is the 2021 bacon demand recovery, when packer margins briefly ran above $70 per hundredweight. The 2020 April COVID packer closures compressed the proxy to near zero as cutout collapsed with slaughter capacity.

The current pork belly primal price measured in standard deviations from its sixty-day rolling mean. A single-number read on whether the belly complex is running hot, cold, or quiet relative to its own recent trend.

• Squeeze, z at or above +2. Belly running hot. Likely drivers: bacon demand surge, bellies-in-cold-storage drawdown, retail promotional pull, or supply shock. Historically a leading signal for pork cutout composite upside, which feeds Lean Hogs.
• Quiet, z between -2 and +2. Belly tracking its own baseline.
• Weak, z at or below -2. Belly collapsing relative to trend. Likely drivers: bacon retail promotion cycle done, oversupply, cold-storage build.

The pork belly is the most volatile pork primal and the one with the strongest standalone forward signal. The summer 2017 belly rally pushed the primal above two hundred dollars per hundredweight at z above three, which preceded a sharp pullback by weeks.

Sigma, written σ, is the Greek letter for standard deviation. When a number is quoted in sigma, it tells you how far the current observation sits from the recent average, measured in units of recent volatility.

• Zero means the reading is at the recent average.
• Plus one means it is one standard deviation above average. In a normal series, roughly 16 percent of readings print at or above plus one.
• Plus two is a two-standard-deviation move. Roughly 2.5 percent of readings print this high. This is the typical trader’s “something is going on” bar.
• Minus signs mirror the same scale to the downside.

On this page, the baseline window is 20 days for daily hog kill and 60 days for the pork belly complex. Different baselines produce different numbers for the same underlying move; always read the window.

Short-hand period-over-period changes.

• WoW, week over week. Current reading versus the same reading one week ago. Catches short-term shifts in packer run rate, positioning, or disease prevalence.
• MoM, month over month. Current month versus prior month. Standard for pork cold storage and PRRS or PEDv prevalence.
• QoQ, quarter over quarter. Standard for Hogs and Pigs breeding-herd prints.
• YoY, year over year. Current reading versus the same calendar reading twelve months ago. Controls for seasonal patterns.

Percentages are relative; “+2.4 percent WoW” means the current reading is 2.4 percent above last week’s. Percentage-point changes, written “+1.9pp”, apply to readings that are themselves percentages.

FSIS is the USDA Food Safety and Inspection Service. It regulates every slaughter and processing facility in the US that handles meat, poultry, or egg products for interstate commerce.

Each plant on this page carries an FSIS establishment number and a daily active-or-inactive status flag.

• Active means FSIS inspectors are present and the plant is approved to slaughter and process. Daily operations are presumed normal.
• Inactive means FSIS has withdrawn or the plant has surrendered its grant of inspection, voluntarily or by regulatory action. A multi-week event.
• Flip date is the date the status last changed. “None” means the plant has not changed status in the window we track.

FSIS status will not catch a one-day labor action or a water-main shutdown. It will catch a mandated closure or a fire-rebuild window.

WOAH, the World Organisation for Animal Health (formerly OIE), is the international reporting body for animal-disease outbreaks. Member countries notify WOAH when they confirm a notifiable disease, which triggers export restrictions and trade-partner notifications.

• Initial report is the first notification of an outbreak in a country or region.
• Follow-up reports update case counts, control measures, and spread status.
• On-going status means the outbreak is still active in that country as of the last report.

For Lean Hogs readers, the diseases that matter most are African swine fever, foot-and-mouth disease, classical swine fever, PRRS, and PEDv. Highly pathogenic avian influenza matters indirectly, through protein-substitution demand.

WOAH reports are country-level. A single report from Serbia or Peru tells you a trade partner may face import suspensions; it does not tell you the US herd is at direct risk.

A highly contagious viral disease specific to pigs. Mortality in infected herds is near 100 percent; there is no cure. ASF does not affect humans but it devastates pork supply through forced herd culling and import bans.

Why it matters for Lean Hogs. When ASF is detected in a producing country, trade partners typically suspend pork imports for weeks to years. The 2018 to 2019 outbreak in China killed roughly 40 percent of the Chinese sow herd and re-wrote global pork trade flows for three years, pulling US pork exports to record highs and lifting LH futures. US-mainland ASF detection has not happened; the WOAH feed catches outbreaks everywhere else first.

Watch: Hungary, Poland, Ukraine, Germany are chronic. New country first-detections are the trade-material event.

A viral disease that affects cloven-hoofed animals — cattle, pigs, sheep, goats. Not a human health risk, but highly contagious among livestock and devastating to export trade. Rarely fatal in adult animals; the economic damage comes from the quarantine and depopulation response.

Why it matters for Lean Hogs. The US has been FMD-free since 1929, which is a structural pillar of US pork exports. An FMD detection in Mexico or Canada would trigger US import suspensions and reroute global trade. The WOAH feed catches FMD outbreaks elsewhere — recent clusters in Mongolia and Namibia are low-impact for the US pork complex, but a European outbreak would move markets.

Watch: any detection in a US import or export partner.

Distinct from African swine fever. CSF is a viral disease specific to pigs, with high morbidity and significant mortality. Vaccination is effective; several producing countries including the US have eradicated it.

Why it matters for Lean Hogs. The US has been CSF-free since 1978. Reintroduction would be catastrophic for US pork exports — major import partners would halt purchases. Current WOAH-tracked outbreaks are concentrated in parts of Asia and are not a direct US-herd risk, but any detection in Mexico or Canada would change that calculus.

A chronic viral disease of pigs. Causes reproductive failure in sows (abortions, stillbirths) and respiratory illness in finishing hogs. Endemic in the US — not a trade-ban event, but a persistent producer-cost headwind.

Why it matters for Lean Hogs. PRRS is the single largest ongoing cost to US pork producers (roughly US$500M/year industry-wide in reduced productivity). Surveillance monthly readings above baseline (currently tracked by the Swine Health Information Center) signal a tightening pipeline 6 to 12 months out, which is directionally bullish for LH forward.

A diarrheal disease that kills baby pigs. Not a human health risk and not a trade-ban event, but a devastating supply shock when prevalence rises.

Why it matters for Lean Hogs. PEDv was the dominant hog story of 2013 to 2014. It killed millions of US piglets, drove the breeding-herd count to its modern-series floor at 5.76 million by Dec 2013, and pushed LH futures to an all-time nearby high near $1.33/lb in May 2014. Current USDA APHIS surveillance tracks regional outbreaks; elevated readings in Iowa, Minnesota, or Missouri warrant watching for a repeat setup.

Bird flu — a viral disease affecting poultry and wild birds. Not a pork disease, so no direct impact on hog supply.

Why it matters for Lean Hogs (indirectly). Large-scale HPAI outbreaks force depopulation of layer and broiler flocks, which tightens egg and chicken supply and raises prices. US consumers substitute some poultry demand into pork, which is directionally bullish for LH on a lag. The 2022 to 2024 HPAI wave was the proximate driver of the elevated US pork retail-share through much of that period.

Watch: layer-flock depopulation counts, especially in Iowa and Minnesota.

A less-virulent form of bird flu. Not a pork disease. Low direct trading impact; included on the WOAH feed because mutation from LPAI to HPAI is the standard pathway for emerging outbreaks.

Not usually a Lean Hogs tape-mover unless a specific detection scales up to HPAI.

The last date on which a plant’s FSIS status changed between Active and Inactive. Blank or “none” means the plant has held the same status throughout the window we track.

A fresh flip is the most actionable column on the plant table. It is the daily-cadence version of the plant-outage question.

• Active to Inactive flip within the last few days is a potential capacity event. Cross-check with Recent News above.
• Inactive to Active flip is a recovery. If the plant was a top-3 like Tar Heel or Sioux Falls, this is also market-moving.

Share of swine samples that tested positive for porcine reproductive and respiratory syndrome virus in the Swine Disease Reporting System monthly round, pooled across participating US veterinary diagnostic labs.

• Baseline band, 15 to 25 percent. Typical seasonal range; no behavioral change.
• Elevated, 25 to 35 percent. Winter transmission picking up. Watch state alerts for which regions are driving the move.
• Shock, above 35 percent. Historically a 5 to 6 month forward signal for breeding-herd losses and tighter summer slaughter supply.

MoM is the shortest honest trend; YoY controls for the strong October-through-April seasonal cycle.

Porcine epidemic diarrhoea virus positive-test share in the SDRS monthly round. PEDv kills newborn piglets with high mortality; it reads as a direct forward supply tightener on a four-to-six month lag.

• Quiet band, under 10 percent. Normal background prevalence.
• Watch, 10 to 15 percent. Winter accession is building; monitor state alerts.
• Shock, above 15 percent during October through April. Historical PEDv events (2013-14, 2018-19 regional, 2022 reemergence) produced Lean Hogs futures rallies as supply tightened six months out.

Count of confirmed highly-pathogenic avian influenza detections in US livestock (predominantly dairy cattle since March 2024) over the last 90 days, published by USDA APHIS.

• Cross-protein read. HPAI pressure in US dairy and poultry rotates retail demand into pork. The egg-shortage cycle is the clearest historic version.
• Species escalation. HPAI jumps between poultry, dairy cattle, and mammals (red fox, striped skunk, grizzly bear in APHIS records). A spike in mammal detections is the earliest warning for inter-species transmission concern.
• Zero reading. Not an all-clear. Testing cadence falls off in low-detection months.

Federally-inspected hog slaughter head count for the prior week, published by USDA NASS each Thursday around 3 PM Eastern.

• WoW change captures short-term packer run-rate shifts. A sudden -3% or more without a holiday on the calendar is the kind of signal a plant outage would print.
• YoY change captures where we are in the production cycle. Running above 103% YoY for three weeks is a supply-pressure signal; the market usually trades this into Lean Hogs basis.

Pair with the daily AMS LMR hog kill snapshot in the Market Snapshot above. The daily number leads the weekly, but the weekly carries the official revision.

Managed-money net position in CME Lean Hogs futures, Tuesday-cutoff, released by the CFTC each Friday at 3:30 PM Eastern.

• Net long above +70,000 contracts is the historic overbought band. Positioning fuels short-covering risk; the next bearish catalyst gets amplified.
• Net short below -20,000 contracts is the historic oversold band. Positioning fuels short-squeeze risk on any supply tightening.

Current week-over-week change tells you which direction the money moved, independent of the net level.

Total pork product in US refrigerated warehouses as of month-end, released by USDA NASS each 23rd of the following month.

• Build (MoM positive) means supply is outrunning offtake. Processor hoarding, slow retail pull, or export disruption. Capped cutout.
• Draw (MoM negative) means offtake is outrunning production. Retail promotion, export surge, or supply tightening. Supportive for cutout.

Watch the belly subcategory for the fake-cutout-strength signal (Ch 3 personality): belly hoarding can prop up the composite while the underlying ham and loin demand is weak.

US breeding-hog inventory from the quarterly USDA Hogs & Pigs report, published the 25th of March, June, September, and December at 3 PM Eastern.

• YoY contraction leads market-hog slaughter contraction by six to ten months. Herd shrinks now, slaughter tightens next spring, Lean Hogs rallies.
• YoY expansion leads supply loosening on the same lag.

Hogs & Pigs is the biggest Lean Hogs event of the quarter. Historic gap-opens have been plus or minus three to eight percent; 2013 December printed minus ten.

The pork loin primal price minus the pork carcass cutout composite, both in dollars per hundredweight. Measures whether the loin is earning a premium or a discount versus the average pork primal.

• Retail pull, above $5. Loin running premium. Likely drivers: grilling-season retail demand, export surge, short-supply at the processor.
• Flat, -$5 to +$5. Loin tracking the carcass composite; no behavioral read.
• Loin discount, below -$5. Loin trading beneath the carcass. Likely drivers: retail promotion cycle done, oversupply from export disruption, or displaced consumption to belly and ham.

The May through June window ahead of Memorial Day routinely drives the loin to a ten-to-fifteen-dollar premium as retailers feature boneless loin cuts for grilling. The signal typically fades by mid-July.

The CBOT soybean front-month price divided by the CBOT corn front-month price, both in dollars per bushel. The ratio tells you how many bushels of corn one bushel of soybeans is worth — the acreage-decision signal farmers watch heading into Prospective Plantings (end of March).

• Above 2.5. Soybeans pay better. Acreage historically shifts toward soy. Supportive for new-crop corn; bearish for new-crop soy supply.
• 2.1 to 2.5. Normal band. Neither crop meaningfully dominates the planting decision.
• Below 2.1. Corn competitive. Acreage historically shifts toward corn. Supportive for new-crop soy; bearish for new-crop corn supply.

The USDA World Agricultural Supply and Demand Estimates (WASDE) is released the second Tuesday of each month at 12:00 ET. It carries the government’s current estimate for US soybean production, use, and ending stocks for the new crop year.

Ending stocks is the single most-watched number: how many bushels of soy are left in the pipeline at the end of the marketing year (Aug 31). Lower-than-expected = tighter supply = bullish. Higher-than-expected = cushion = bearish. For soy specifically, Chinese purchases (visible in Weekly Export Sales) swing the stock number more than any other variable.

USDA NASS publishes a weekly Crop Progress report every Monday at 16:00 ET during the growing season. It tracks soybean planted, emerged, blooming, setting pods, dropping leaves, and harvested percentages state-by-state and nationally.

The harvest-progress number here is the national US soy-harvested percent as of the week-ending Sunday. Fast harvests (ahead of the 5-year average) typically pressure near-term cash basis as elevators fill; slow harvests tighten basis and support futures.

The National Oilseed Processors Association (NOPA) publishes a monthly crush report around the 15th of each month covering the prior month’s soybean crush volume at NOPA-member plants — about 95% of US domestic soy processing capacity.

Crush volume tells you domestic soybean demand independent of exports. High crush = tight domestic supply, bullish soy and soy meal; low crush = loose soy supply but tight meal availability from the pipeline. Trader anchors: ~190 Mbu is a strong month, below 150 Mbu is weak. The three-month trailing average smooths out plant-maintenance distortions.

The processor-arbitrage spread: value of soybean oil + soybean meal that one bushel of soybeans yields, minus the soybean price. Formula: (SM × 2.2 bu/short-ton) + (BO × 11 lb/bu) − S — everything in cents/bu, then converted to $/bu for display.

When board crush is wide (above $1.50/bu), processor economics are fat — plants run at capacity, crushing peak soy supply, which supports meal + oil prices. When compressed (below $0.60/bu), plants dial back — soy builds in storage, meal and oil tighten. The board crush is the proxy; actual plant margins also depend on local basis and energy costs.