The USDA’s latest quarterly Hogs and Pigs report showed a
record number of hogs and pigs.
Market analyst Joe Kerns, of Iowa-based Kerns and Associates, says industry analysts were holding their breath ahead of this set of numbers hoping there were no big surprises. “And even those these numbers are slightly larger than analysts pre-report expectations coming in – I think we can exhale,” he says. “And start to focus on some market-driven forces to dictate what the market does from here forward.”
There won’t be a shortage of pork, but, Kerns still anticipates
hog prices moving higher through the third quarter of 2020. “It’s still a matter of the export market
taking it off our hands in conjunction with how the futures are trading in
order to achieve these levels of prosperity we’re looking to in 2002.”
University of Missouri livestock market analyst Scott Brown says
export growth remains key in the hog market moving forward. “We’re probably talking about 4 percent in
annual pork production this year when its all said and done,” he says. “It’s going to be amazing if we can hold prices
and even keep prices higher with what’s been another strong year in growth in
pork production.”
The report was considered neutral to bearish for both the cash
and futures markets – and hog futures ended the day mostly higher.
Continue reading Export optimism helps offset record hog supply at Brownfield Ag News.
