Global pork market outlook: Lfuturesean hog futures prices stabilize after sell-off

Published 2021년 4월 23일

Tridge summary

Lean hog futures are facing selling pressure due to rising feed costs and declining pork exports, particularly to China. Despite these challenges, cash hog and fresh pork prices are rising, and supplies in cold storage are providing a buffer for reduced numbers. China's pork production has increased by 31.9% year-over-year in the first quarter of 2021, but African swine fever continues to temper expectations on the speed of the hog herd rebuilding. China's Ministry of Agriculture and Rural Affairs has released guidelines to reduce the use of corn and soymeal in hog and poultry feed, and has divided the country into regions to prevent and control animal diseases. Chinese hog producers are experiencing challenges such as falling hog prices, rising feed costs, and African swine fever, with some issuing profit warnings.

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

Original content

Lean hog futures prices have faced selling pressure recently on rising feed costs. The market is also on edge after another USDA update on weekly pork exports showed declining purchases, particularly to China. On the positive side for lean hog futures, cash hog and fresh pork prices are on the rise this week. Weekly US hog slaughter rates are struggling to reach 2.5 million head and may fall below 2.4 million by the middle of next month. Pork production rates will trend similarly, and supplies in cold storage are down from recent years to provide a buffer for reduced numbers this summer. USDA Thursday reported weekly US pork net sales reductions of 22,100 metric tonnes (MT) reported for 2021 - a marketing-year low - were down noticeably from the previous week and from the prior four-week average. Increases were primarily for China (13,100 MT, including decreases of 1,700 MT), Japan (2,700 MT, including decreases of 100 MT), South Korea (1,500 MT, including decreases of 200 MT), ...

Source: Thepigsite