Pork demand, both domestic and export, remains strong which is welcome news to U.S. pork producers, especially considering that wholesale-pork prices are up about 15 percent from a year ago.
“Despite both more hogs and larger hogs coming to market, prices remain well above year ago levels, indicating that for the moment pork demand remains robust,” according to Steve Meyer and Len Steiner, CME Daily Livestock Report authors. “The Iowa/Minnesota lean hog carcass price was quoted last week at $70.89 per hundredweight, 7.4 percent higher than a year ago. The pork cutout rose 1.22% from the previous week and it currently is 12.6% higher than last year.”
South Korea temporarily barred pork and poultry imports from Germany after a media report that the meat may contain dioxin, according to a Bloomberg report. “That would be a little bit bullish for U.S. pork,” said Dick Quiter, an account executive at McFarland Commodities LLC. “They probably have to be looking for pork from somewhere else and hopefully that’s us.”
Hog slaughter for last week was pegged at 2.189 million head, 4.38% higher than a year ago. And with heavier hogs coming to market, Total production for last week topped 453 million pounds, a 6.2 percent increase from a year ago.
Source: CME Daily Livestock Report, Bloomberg News