Every hog has its day, and in the pork market, farmers are celebrating.
According to The Wall Street Journal, lean-hog prices have jumped 19 percent this year in response to a high consumer demand and a low supply of hogs. This growth makes pork the largest U.S. commodity this year.
This leap in market prices is due in part to China’s Shuanghui International Holdings Ltd.’s buyout of Smithfield Foods Inc. It is expected that U.S. pork exports to China will increase as a result of this buyout, which will boost pork prices.
Hog farmers have been rejoicing. The rise in hog prices has helped farmers offset the high price of feed, which is the result of last summer’s drought.
Mark Legan, a farmer from Coatesville, Ind., told The Wall Street Journal that he has sold about 4,000 pigs in the last month for “some of the highest prices we’ve ever seen.”
However, some expect the current boom in hog prices to pass soon. Jason Britt, president of Central States Commodities, a brokerage in Kansas City, Mo., suspects the hog market will dwindle and traders will move their investments back to live cattle.