Profit Maximizer Report: Pork Supply Now and Fall 2021Mon, 23 Aug 2021 08:25:26 CDT
The Profit Maximizer, funded by the Pork Checkoff, is a free, bi-weekly email produced by Steiner and Company for the National Pork Board. The report provides insights and analysis on current pork markets.
August 16 highlights:
• USDA estimates hog slaughter for the week of Aug. 8 was 2.4 million head, nearly 6% lower than a year ago. In the last four weeks, hog slaughter has averaged about 8% lower than the abnormal year of 2020;
• Pork prices remain firm and are bolstered by Labor Day retail demand. Labor shortages are causing differences in boneless and bone-in product; and
• The June USDA Hogs and Pigs report suggested there were 28.6 million hogs weighing more than 120 pounds on June 1, compared to 27.4 million hogs in that category in 2019, an average increase of about 4% during June, July and early August.
• Hog futures have been volatile in the last two weeks as producers look to get some downside protection given the heightened risk from African swine fever (ASF). Funds are also less certain about the market and have tried to scale back their positions.
• There is a lot of conversation in the U.S. as to what happens if ASF enters Puerto Rico and if this will cause the United States to lose its ASF-free status. This presents significant risk for U.S. pork exports and prices.
• In the near term, pork prices remain very firm and are bolstered by retail demand going into the Labor Day weekend. Processors continue to have staffing problems, resulting in a big difference between boneless and bone-in product.
• Hog slaughter last week climbed over 2.4 million head and combined with the slowdown in exports to Mexico it resulted in significantly lower prices for bone-in hams. Boneless hams, however, remain firm.
Click here to read the full report and see graphs explaining carcass weights price charts and fresh pork forecasts.
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