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Weekly Overview: US Hog Inventory Up Slightly, Breeding Herd Down

29 March 2016, at 12:00am

ANALYSIS - The USDA released its latest US Quarterly Hogs and Pigs report over the Easter weekend.

According to market analyst Ron Plain, the March Hogs and Pigs report said the nation's hog inventory was up 0.4 per cent on the first day of March. The breeding herd was down a tiny 0.03 per cent and market hog numbers were up 0.4 per cent.

Analysts Steve Meyer and Len Steiner also commented on the release of the report. They believe that hog supplies will be adequate over the summer and autumn and that capacity constraints will not be a serious concern unless farrowing rate improves for Mar-May and pigs per litter returns to a +2 per cent growth rate.

In Europe, the market is awaiting the release of 90,000 tonnes of pig meat from the private storage aid that was opened in January.

Most of this product will be released back onto the market in the three weeks starting 17 April and the remaining product will be released in May or June.

If the release of stored product results in the lowering of prices, it would increase the pressure on the EU Commission to open a new storage scheme, said AHDB Pork.

In other market news, BRF has announced that it has entered into an agreement to acquire the Argentinian company Alimentos Calchaquí Productos.

Alimentos Calchaquí Productos operates in the cold cuts market and owns leading brands such as Calchaquí and Bocatti.

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