Market analysis

The pig disease outbreaks have kept hog inventories at relatively low levels in recent months. Many cases of Sudan Red, a carcinogenic food dye, were found in duck and chicken eggs of late, giving pork demand a boost.

Meanwhile, the significant rise in corn prices from the earlier period has sharply pushed up the cost of hog production. Additionally, the outbreak situation has worsened, keeping hog prices relatively competitive. Hence, most backyard farmers released more hogs into the market recently.

Some backyard farmers incurred losses due to high hog mortality rates from disease.

Market forecast

With continued tightness seen in near-term supply and pork demand expected to pick up further amid colder weather, prices should register more gains in the week ahead.