After falling for three weeks, the USDA showed in its latest “U.S. Export Sales” report that pork net sales are finally climbing. The report showed net sales of 6,800 27,900 metric tons (MT) for 2013, up 65 percent from last week but 29 percent lower than the 10-week average.
These sales were primarily for Mexico (3,700 MT), Japan (800 MT), Ukraine (600 MT), Canada (500 MT), and Hong Kong (300 MT). Exports of 9,300 MT were primarily to Mexico (3,400 MT), Hong Kong (1,700 MT), Japan (1,200 MT), Canada (900 MT), and Ukraine (700 MT).
Hog futures were mixed Wednesday, as the fall and winter contracts rose slightly, possibly in response to talk about the damage being done by the PEDV outbreak and/or to their large discounts to recent quotes for the CME lean hog index. Overnight hog futures joined the general decline though persistent cash futures and the discounts built into nearby futures limited downward pressure.
However, the Wednesday afternoon drop in wholesale pork values probably signaled the larger trend for the second half of the year. August hog futures skidded 0.05 cents to 98.87 cents/pound in late Wednesday trading, while December declined 0.25 cents to 83.20.