US pork values depreciate; possible boost for export sales

USDA's Cold Storage report released Wednesday, 22 October 2008 revealed proof of ham values and consequently hog prices will continue to plummet for the rest of the year, which could re-ignite interest from foreign buyers, said analysts.

September's stock of bone-in and boneless hams was only 1 percent lower compared to last year.

Livestock analysts Steve Meyer and Len Steiner had predicted that if ham cold storage stocks match or surpass last year's figures, then there could be a further deterioration in ham values and hog prices for the reminder of the year.

The analysts said such a trend portends well for US pork export sales, which had weakened due to reasons like the rising value of the US dollar. At some point in time, world buyers will once again return to the US pork market with attractive current prices, however competition will be stiff due to recent weakness in the value of the Euro and Brazilian real.

Hog futures rose on Tuesday, 21 October 2008 on hopes that export sales were rebounding.