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Lower Pork Exports Expected to Pressure Live Hog Prices

by 5m Editor
7 March 2016, at 6:00am

US - The Director of Risk Management with [email protected] Marketing Services says an anticipated lag in exports of beef, pork and chicken combined with increased slaughter hog numbers will put pressure on live hog markets, writes Bruce Cochrane.

The US Department of Agriculture is forecasting lower beef, pork and chicken exports.

Tyler Fulton, the Director of Risk Management with [email protected] Marketing Services, says the high US dollar has been a key factor.

Tyler [email protected] Marketing Services:

Exports make up a big function of prices and not just exports of pork but exports of chicken and beef as well.

Chicken has struggled, largely because there are still countries that have applied a ban on US product by virtue of the disease outbreak that the US incurred really about 8 months ago.

The other consideration is the impact of the US dollar.

When you have constraints to the export sector, quite simply it relies on the domestic market to clear more of that product and when that's the case price concessions are the key.

That's really the only way that you can really clear the market of all the product that's being produced.
I think, in the current environment, with relatively constrained export opportunities, it's generally a bearish factor to contend with as far as the impact on hog markets from slower exports of beef, pork and chicken.

Mr Fulton says right now there's a belief that the supply will be relatively heavy for all 3 of those proteins for all of 2016. He says pork in particular is likely to run into a problem due to the volume of product being produced and number of hogs that will come to market at the tail end of 2016.

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