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– Phase 1 of US and China trade negotiations could open the door to more US pork sales to that market and higher pork prices.
– In the short term pork supplies remain plentiful, with slaughter last week over 2.7 million head, the second highest on record.
– Pork belly prices have surged higher as processors look to bolster inventories. Low prices in September also allowed retailers to book significant volumes for fall product features.
– Ham prices remain extremely volatile. Export sales to Mexico last week were sharply lower. Mexico also delisted a couple of large plants, which may have impacted product flows.
– Hog futures maintain significant premiums for next year as speculators think a trade deal between US and China could limit product availability, similar to what happened in 2014.
Market Update from Hormel – Pork Profit Maximizer Foodservice Edition
Pork Profit Maximizer for October 14, 2019 – Foodservice Edition.pdf