January 31, 2005

US hog prices to ease in 2005

The US hog market in 2005 is seen staying strong for the first three quarters, then easing in the fourth quarter as a result of lower demand for pork and potential lower beef prices for consumers if the government resumes international trade with Canada and Japan.

John Lawrence, Iowa State University Extension (ISU) economist, told pork producers on Thursday at the annual Iowa Pork Congress he projects 2005 hog to average between $48.00-$52.00 per hundred weight, compared to an average price of $59.36 per hundred weight between 2000-2004.

Because the market is relying on demand staying high, the ISU economist suggested there is greater risk than reward for prices in 2005.