August 28, 2010

 

 

During July and August, US wholesale pork prices has jumped 40% and 66%, respectively, against on-year, amid tighter supplies.

 

The higher pork prices have resulted in an aggressive liquidation of cold storage pork inventories, with total pork inventories in US cold storage facilities during July falling 28%, to 177,469 tonnes cwt (391.252 million lbs).

 

Assisting the upward price pressure has been a fall in US hog and pig numbers, which in turn has seen US pork production volumes over the past four months lower than last year.

 

Alongside declining supplies, demand abroad for US pork has been strong, with US pork exports 8% higher so far this year, and recent June figures also showing pork exports up 21%, at 165,635 tonnes cwt (365.162 million lbs).

 

US pork prices are expected to remain high for the rest of the year, as prospects for US hog industry expansion remain limited, due to a fall in breeding numbers, lower cold storage stocks so far this year and US pork exports for the second half of this year forecast to rise 10% on 2009.

 

The high-priced US pork market is a very positive factor for beef over coming months, particularly for imported beef, as frozen boneless beef stocks in US cold storage facilities are also 14% below last year's levels.