US hog futures look bright going into 2020

US hog futures kicked off 2020 by approaching seven-week highs in gains driven by increasing expectations for bigger sales of American pork to China.
calendar icon 3 January 2020
clock icon 3 minute read

The United States has been at a disadvantage to other suppliers since last year because Beijing imposed retaliatory tariffs on imports of American pork as part of the two countries' trade war.

US farmers hope China eliminates its retaliatory tariffs or issues more waivers to tariffs. They have hefty inventories after expanding herds to record-large numbers last year.

"You haven't seen the wave of pork demand that it would take on the trade front to get the market really excited," a commodities broker said. "With the expanded hog herd, we need to move it."

In the cash market for pork, prices increased for carcasses, loins, butts and ribs, according to US Department of Agriculture data.

Traders on Friday will review weekly USDA export sales data for pork and beef.

meat displayed in a refrigerator at a supermarket
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