Pork Prices Strong During 2011Tue, 04 Jan 2011 17:02:05 CST
Purdue University Extension economist Dr. Chris Hurt, predicts hog and pork prices will launch to record highs in 2011 due to a combination of high demand, high feed costs, and a smaller herd. Foreign buyers are expected to elevate pork exports by 10 percent, representing a record 21 percent of domestic production. As a result Hurt predicts this year, - the available supply per person in the United States will drop by nearly 3 percent. That will cause consumers to face record retail pork prices.
For producers, Hurt predicts live hog prices to exceed 60-dollars per live hundredweight, or more than 80-dollars on a lean basis. Historically a 90-dollar lean price, or about 67 live, was the top of futures markets. Some current futures prices now exceed 90-dollars for the spring and summer delivery contracts and raise the possibility of them reaching 100, or 75-dollars live.
The Purdue economist notes - a new era of high costs probably means there will eventually be a new era of record high hog and pork prices. According to Christ Hurt - feed costs aim toward a break-even year with costs estimated to be slightly over 60-dollar as well. So, there will be no great profit prospects during 2011
WebReadyTM Powered by WireReady®NSI
Top Agricultural News