The demand for pork, U.S. pork, has never been greater. Price wise, every pork cut, with the exception of pork ribs, is trading at price levels above the previous two years.
It looks like March slaughter may come in slightly above the 4.5% increase implied by the December Hogs and Pigs report. It doesn’t appear there will be any large revisions in the market hog inventory when USDA releases the next Hogs and Pigs...
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Despite confirmation of outstanding pork demand, futures prices have forged a top. Market is telling us that rhetoric from Washington toward main trade partners could spell disaster.
Last year saw record imports of pork to China — mainly from the EU. Could this be what has been supportive of the pork complex when our Hogs and Pigs Report would certainly indicate no shortage on the supply side?
New trends appear to confirm our outlook that demand for U.S. pork, as well as demand for several other commodities, has shifted upward. It also appears to be long term in nature.