US pork market turns the corner

After nearly two years of losing money in the market, the outlook is finally improving for pork producers.

Producers weathered the US and global recession, record hog supplies and even the loss of exports due to AH1N1. Hog prices have risen substantially since just the first of the year, and futures prices look strong through the rest of 2010.

"The summer months right now are suggesting that we're going to be in the low 60s on a live weight, live basis, compared to 6-8 weeks ago, we were in the mid-30s," said Brad Kooima of Kooima & Kaemingk.

The number of hogs has declined as producers sold off, or sold their herds, which is driving the higher prices. Not only are hog producers seeing the benefits of higher hog prices, they are also seeing better break-evens because of lower corn and feed prices.

According to Kooima, the other factor helping to boost the hog market is the recent reopening of key export markets, like China and Russia.

He said that with the resumption of exports and an improving US and global economy, he's optimistic about the hog market now and in the future. In addition, he said another key for keeping hog prices strong will be keeping US consumer demand going.