CME update: consistent pork demand pushes futures to May 2019 high

US hog futures rose to their highest price since May 2019 on 9 October as domestic demand for pork remained strong.
calendar icon 12 October 2020
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The US Department of Agriculture, in a monthly supply and demand report, reduced its 2020 domestic pork production forecast, citing lower commercial hog slaughtering in the second half of the year and lighter carcass weights.

The 2020 and 2021 pork export forecasts were lowered from last month because of "weakness in global import demand," according to the USDA.

Some analysts said demand from China, the world's top pork consumer, was still supportive to the hog market. China needs to import more meat after suffering an outbreak of a fatal pig disease, African swine fever, over the past two years.

China's agriculture ministry on 9 October confirmed African swine fever in piglets illegally transported to the southwestern city of Chongqing, the first reported outbreak since 25 July.

"We're expecting a very robust export shipment season to close out the year, especially to China," Suderman said.

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