Pig outlook: Lean hog futures prices in a free-fall

Market watchers revise their estimates for US food inflation as US lean hog futures approach the market bottom.
calendar icon 29 October 2021
clock icon 8 minute read

Updates on China's swine sector

China pork prices continue to decline

China’s average pork price in 16 provincial regions fell 15% in September and was down 61.8% versus year-ago, according to ag ministry data.

Chinese domestic pork and hog prices continue to fall amid increased supplies and a decline in demand. In August, Beijing increased surveillance of the hog/pork market in an attempt to stabilize prices and domestic production. While pork prices are falling, Chinese consumers are spending a lot more on vegetables after fall flooding wiped out crops. The price of some vegetables is now higher than pork.

Graph showing the trading trajectory of US December lean hog futures
Bears have solid overall near-term technical advantage amid steep sell off recently. Solid resistance seen at the September low.

© Jim Wyckoff

Vet holding pig feed in front of piglets
Traders doubt that the pre-Christmas ham rally will occur this year
Sides of pork hanging in a freezer
Net pork sales rebounded this week and are largely in line with the monthly average
Person reading a meat label in front of a grocery case
Meat and poultry prices could rise by as much as 5%
Charts and graphs of a market
Overall food price inflation in the US is put at 3% to 4% for 2021
© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.