U.S. pork producers saw near-record exports in March, and China’s buying is expected to remain strong as the Asian nation moves pork facilities away from bodies of water to limit pollution, says Craig VanDyke, Top Third Ag Marketing. http://dimsums.blogspot.com/2017/05/pig-farm-demolition-conflicts.html
“China is the huge outlier,” VanDyke tells Tyne Morgan on the “AgDay” Agribusiness Update segment for Friday, May 12, 2017. “As of right now, their pork production is expected to drop moving into the end of 2017. They’re culling some of the sow herd as they move their production away from rivers and waterways in China. To fill that protein void, we have competitive global pork prices right now, and we’re seeing the cash market pick that up which, in my opinion, is moving along the lines of demand.”
U.S. demand is also strong, and new processing plants in Michigan and Iowa are expected to keep ample pork supplies flowing to consumers this summer.
“When you look at competing proteins, beef is really starting to take off. The pork market definitely could find some market share moving forward into grilling season,” VanDyke says. “We’re starting to see more recently a big run in the cash market, and the charts have shown a nice V-bottom in the hog market. I think we have a shot at testing the recent contract highs for July, June and August contracts here as long as we can keep the cash moving.”