Kelsey Gee reported yesterday at The Wall Street Journal Online that, “U.S. hog futures extended their steep fall on Thursday, ending at a fresh three-month low as a steady uptick in hog supplies coincides with a drop in pork exports.
“Lean-hog futures for August declined 2.825 cents, or 3.9%, to 68.85 cents a pound on the Chicago Mercantile Exchange, the lowest level since April 14. Most-active October futures dropped 1.85 cents to 59.20 cents a pound.
“The hog market has fallen 17% in the last month as pork production has picked up throughout the month. Farmers across the country are raising more hogs and weights remain historically heavy, due in part to back-to-back years of large corn crops, which have made it relatively inexpensive to feed hogs, cattle and chickens.”
Ms. Gee explained that, “Strong export demand from China had made the $8 billion hog futures market one of the top-performing commodities through the first half of the year. But domestic and export demand for red meat has turned lukewarm as the stronger U.S. dollar has crimped buying interest from would-be buyers in July.
“Demand also has slowed among U.S. consumers, who typically opt for lighter fare during the hottest period of the year and eat less bacon, sausages and pork chops.”