April 2, 2008

High US pork supplies pressurize prices but exports could benefit
 

High pork supplies are one of the factors that are pressuring prices, but pork exports could benefit, especially from China.

USDA's Hog and Pig Report on last Friday (March 28, 2008) showed that total hog inventory is 6.5 percent higher than a year ago.

Pork producers are suffering losses based on current live hog prices and increasing feed costs, and John Lawrence, a livestock economist with the Iowa State University forecasts that the pork industry's losses will continue through early 2009.

Pork exports could benefit in the months ahead due to the weakening US dollar, and China has recently become a significant market for pork exports and this trend is expected to continue, according to Lawrence.