Pig outlook in the US

Published 2021년 10월 29일

Tridge summary

Lean hog futures prices have seen a significant decline in October, with pork cut-out values also falling. Despite strong pork movement, traders expect further weakness due to high cash hog prices. The USDA has reported increases in pork net sales and exports, but rejected several meat shipments from Australia for contamination. The USDA also increased its forecast for grocery store meat prices for 2021, citing strong demand, labor shortages, and high costs. In China, pork and hog prices are continuing to fall due to increased supplies and decreased demand, while consumers are spending more on vegetables after fall flooding damaged crops.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Lean hog futures prices have lost over $13.00 per hundredweight during the month of October. The pork cut-out values are sliding, but strong movement of 451.12 loads of product Wednesday is an first indication the US wholesale pork market may have found a price bottom. However, packers must be able to move a lot of pork product at higher prices to signal a bottom is in place. US cash hog prices continue a seasonal decline, as indicated by the latest CME lean hog index quote at $81.67 - the lowest since late February. Traders expect more weakness, since the December lean hog futures settlement came in almost $10 under the CME lean hog index, with just over six weeks left until the futures contract’s expiration. Watch the US wholesale ham market for strength over the next six weeks. Traders at present doubt the traditional pre-Christmas ham rally will occur, or will be limited this year, despite the significant decline in stocks levels versus the 10-year average. If ham values see a ...

Source: Thepigsite