November 5, 2008
US lean hog futures continued its fall on Monday (Nov 3, 2008) amid slowing pork exports due to global economy crisis.
Pork production remains high and exports have to stay strong to support the industry.
Cash pork values continued to fall after falling to the lowest level in nearly seven months. The USDA on Friday (Oct 31, 2008) put the pork carcass cutout at US$62.17 per cwt, down 20 cents and the lowest since April 10.
Aside from slowing exports, domestic demand is also sluggish, leaving a great supply of pork on the market, according to John Kleist, analyst with Allendale Inc.
December lean hogs closed at 54.4 cents per pound and February was off 1.075 cents at 61.9 cents. December and February posted contract lows.
Hams prices came crashing down to US$47.05 per cwt on Thursday (Oct 30, 2008) from the recent high of US$90.60 per cwt. Ham prices dropped a further US$5 on Monday (Nov 3, 2008), partly due to the break in the Mexican peso.
Pork belly futures also fell on declining cash belly prices, and prices fell to contract lows. USDA reported a US$4 per cwt fall in the 14-16 pound weight group early on Monday.
February pork bellies ended off 0.875 cents at 83.9 cents per pound and March was off 1.2 cent at 84.050 cents. February through May posted contract lows.