Lower Pork Prices Helping Demand

Dan Exports/Imports, Industry News Release, Pork, Trade

Pork production is accelerating, prices are lower, and demand is improving. New Data from the Department of Agriculture shows that lower pork prices this year have encouraged domestic and foreign consumers to buy more U.S. pork.

lowerMeat industry publication Meatingplace reports 2018 total cold stocks of pork have remained at or below three and five-year averages so far, and large supplies of hogs are expected to keep hog prices significantly below year-ago levels through at least the first half of 2019.

Even with the current trade climate, July pork exports were almost nine percent higher than a year earlier. Third-quarter pork exports are expected to be 1.3 billion pounds, almost six percent higher than in the same period a year ago. Pork exports were stronger despite lower shipments to Mexico and China, both of which have imposed retaliatory tariffs on U.S. pork products. July exports were supported by strong shipments to South Korea, Japan, the Philippines, Australia, and Colombia.

USDA will release its quarterly Hogs and Pigs report this Thursday, providing more pork production insight.

Source: National Association of Farm Broadcasting News Service.