Pig outlook - US pork production projections, Prop 12, Canadian super pigs, and China's sow herd

Published 2023년 2월 24일

Tridge summary

The article provides an overview of the lean hog futures market and the projected trends in the US and Mexico's pork markets. It highlights the potential continuation of the market's sideways to upward trend, despite high premiums in spring and summer contracts, driven by expectations of rising cash hog and wholesale pork prices. The US is projected to see a 2% increase in pork production and a slight rise in pork exports, while Mexico's pork production is anticipated to grow due to private investment. However, the article also touches on challenges such as California's pig farming laws, the introduction of highly intelligent pigs from Canada, and China's plans to stabilize its hog market by buying pork for state reserves and regulating hog production capacity.

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

Original content

Lean hog futures price action the past week still suggests a market bottom is in place and that prices can continue to trend sideways to higher in the coming weeks. The latest CME lean hog index was up 77 cents--the biggest daily gain during the current rally from the January low. It’s likely the US cash hog and wholesale pork markets will continue to rise in the coming weeks and months. The trend will likely remain up despite the present sizeable premiums built into the spring and summer lean hog futures contracts. It’s likely the comparatively low US pork prices versus beef will prompt stronger grocer interest in featuring pork this spring. Hogs: U.S. pork production is projected at 27.4 billion lbs., up 2% from last year. Exports are expected to inch up 0.2% from last year to 3.65 billion pounds. Cash price: $66.50, down $4.71 from last year. In 2023, Mexico’s 2023 pork production is forecast to increase by 4.6 percent due to continued private sector investment. While pork ...

Source: Thepigsite