In the past couple of months the pork industry has realized the important role exports plays in our long term profitability.
Exports are down both due to trade issues (ractopamine ‘free’ pork to Russia and China) and currency exchange rates (the devaluation of the Japanese yen). The decline in exports means more pork consumption per capita in the US as freezers can only hold so much inventory.
In spite of the pessimistic outlook the export news brings to the market, prices have been rising in line with seasonal expectations. For those that have to buy feed grains the biggest downside to chances for profitability this summer is the local grain basis.