Robust Demand Supporting Pork Prices this Summer, Fall Outlook is less Certain

Hog slaughter has been running above year ago levels in the last two weeks but since early March slaughter has been about the same as last year while weights have been lower, resulting in less pork available in the spot market.

Highlights

Hog slaughter has been running above year ago levels in the last two weeks but since early March slaughter has been about the same as last year while weights have been lower, resulting in less pork available in the spot market.

Demand for fresh pork has been robust as high meat prices have caused retailers to focus on value cuts, such as loins, butts, and ribs.

Ham prices were sharply higher in late March and early April following a surge in orders from Mexico, with some 75k MT of pork booked in just three weeks. However, as order flow has slowed down, ham availability has improved.

The strong US dollar may be negative for US exports to Asia but the strong peso has supported exports to Mexico. Whether that continues will be a significant factor.

Pork trim prices are firm and expected to trend higher on robust demand and seasonal supply reduction.