January 4, 2008

USDA pork prices seen stagnant near-term

The US Department of Agriculture's pork carcass composite value Wednesday (January 2, 2008) afternoon was the lowest in nearly 21 months, and prices are seen remaining stagnant for the near-term.

USDA reported the pork cutout at US$57.04 per hundredweight, down US$0.99 on the day. The 2006 low for the cutout was US$55.59, which was set on April 10.

Rich Nelson, director of research at Allendale Inc. in McHenry, Ill., predicts that wholesale pork prices could track lower over the next two to three days then see some stabilization through the middle of the month. He said prices might appreciate later in the month.

A Midwest-based meat broker said the wholesale pork market "doesn't seem to have any lift through next week."

Joe Kropf, analyst with Kropf and Love Consulting in Overland Park, Kans., said Wednesday that demand for pork and other meats could be sluggish throughout the month due to the arrival of credit card bills from holiday shopping along with heating bills and high fuel prices. Pork will be competitive with beef and chicken, but consumers may still buy less of it in January, he said.

Analysts and livestock dealers said export sales must remain strong if pork prices are to stabilize and possibly turn upward later in the month.