Record Pork Production Lowers Hog Prices
Hog futures hovered near three-month lows at times late this (last) week as higher U.S. pork supplies coincided with weaker overseas export demand. Nasdaq dot com says strong export demand from China and other buyers has weakened considerably as the dollar strengthens against other overseas currencies. Domestic demand has also dropped during the summer as many consumers eat fewer meats during the hottest months. American producers were raising over 68 million hogs as of June 1, which is up two percent from last year. The U.S. Department of Agriculture says supplies are likely to pick up through the rest of the year. A commodities broker at Archer Financial Services in Chicago says, “Feed is cheap and plentiful, and people are realizing that’s going to contribute to increasing weights in their hogs.” 2016 production forecasts call for 25 billion pounds of pork, up two percent from 2015 which was also a record-breaking year.
From the National Association of Farm Broadcasting news service.