The USDA’s latest U.S. Export Sales report showed that pork net sales continue to drop. Net sales of 8,300 MT for delivery in 2013 were primarily for Mexico (2,500 MT), Hong Kong (1,900 MT), Japan (900 MT), Canada (800 MT), and South Korea (700 MT).
Exports of 7,700 MT were primarily to Mexico (2,900 MT), Canada (1,400 MT), Japan (1,100 MT), South Korea (500 MT), and Hong Kong (300 MT).
On Wednesday Hog futures also climbed substantially as belated talks of seasonal strength boosted the market in the face of equity losses, dollar gains and morning reports of cash weakness. Futures built slightly on their Wednesday gains, reflecting the wholesale strength indicated on the afternoon USDA report.
However, the belief that the hog and pork industry will see much more of the same during the second quarter, when consumer grilling demand surges and production dips to annual lows, almost surely exaggerated late futures strength. May hog futures were unchanged at 88.12 cents/pound early Thursday morning, while the June contract advanced 0.15 cents to 90.50.