Pig outlook: Lean hog futures trending up

China's pig supply expected to fall in 2022, according to latest USDA analysis.
calendar icon 3 September 2021
clock icon 7 minute read

In 2022, government price controls will undermine hog and pork production. Consequently, Chinese pork exports will fall 10% to 90,000 MT.

Pork Imports: In 2022, a tight pork supply will drive pork imports to reach 5.1 million MT (MMT). In 2021, significant slaughter increased pork production and frozen pork reserves.

Higher consumer and institutional demand in the fall and winter months of 2021 will deplete frozen pork reserves. For this reason, pork imports are forecast to rise in 2022 as pork supplies tighten.

Chart showing the trading trajectory of US October lean hog futures
BUlls gain near-term technical advantage as prices now trending higher, suggesting more of the same in the near term

© Jim Wyckoff

Outdoor food market
Food prices are rising rapidly year-on-year in latest FAO snapshot
Frozen pork sides hanging in a freezer
US pork sales for 2021 have posted dramatic gains from last week
Pigs crowding near a fence
The USDA believes that price controls in China will undermine its hog and pork production
© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.