U.S. hog prices fell Wednesday amid discussion that July 4 holiday pork sales will fall short of what is needed to reduce supply, reports Reuters.
According to Steiner Consulting analyst Altin Kalo, "There is simply too much of it around," he said of pork supplies.
One of the factors in the burdensome pork supply is heavier slaughter weights. Despite 1 percent fewer hogs, pork production was actually up 1.4 percent last week from a year earlier. Another factor is lower U.S. pork export levels in part due to restrictions by countries including China and Russia.
James Burns, a Chicago hog trader said "We're heading lower. There is just no demand whatsoever, no export business. Perhaps they're eating chicken."
After the futures' closed, the U.S. Agriculture Department on Wednesday reported the average wholesale pork price was the lowest in six years.
"Seasonally we're not supposed to be setting lows. We are supposed to be at the high for the year. It reflects the situation where we have been killing more hogs than expected. I think it also reflects very weak export demand," said Ron Plain, agricultural economist at the University of Missouri.
Read the full report.