USA: Pork prices weak, hog prices under pressure

Published 2023년 3월 1일

Tridge summary

Pork prices in North America are experiencing a downturn due to higher slaughter numbers and an oversupply of competing meats, as reported by Rabobank. The year-to-date pork cutout value has decreased by 11% compared to the previous year, with belly, loin, and rib prices also seeing significant drops. However, ham prices have risen by 20%. The situation is worsened by increased poultry supplies and high cold storage inventories. Despite these challenges, U.S. pork exports to Mexico and China have seen growth, contributing to a rise in pork export values. Despite the pressure on prices, Rabobank remains hopeful about 2023 export demand due to reduced global pork suppliers, a weaker USD, and lower U.S. pork supplies.

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

Original content

Pork prices are weak due to larger-than-expected slaughter levels and large supplies of competing meat, according to latest Rabobank North American Agribusiness Review. Year-to-date pork cutout has averaged -11%, belly prices -38%, loins -9% and ribs -23% versus year-ago levels. Ham values, however, have increased 20% year-over-year. "Sizable increases in poultry supplies and heavy cold storage inventories (+15.6% YOY) are expected to limit upsides in pork prices through spring, although current indications of improved retail support for pork should help the industry gradually eliminate the surplus," write Al Griffin, senior data analyst and author of the report. With YTD slaughter running approximately 3% ahead of USDA expectations, hog prices are also being impacted. Griffin notes the 2.5 million average weekly slaughter through mid-February is most likely a catch-up following a lower Q4 2022 slaughter and has resulted in losses topping $10/head for producers. "We expect prices ...

Source: NationalHogFarmer