Hog futures have extended their recent gains today on news of decreased Chinese pork output. Hog futures are up $2.17 today currently trading at $90.00 per cwt at the Chicago Mercantile Exchange.
Farmers in China reportedly decided to cull their herds thereby shrinking pork output as corn costs to feed their animals became too expensive. This has caused a rollover effect for more pork imports which has been estimated to be as much as 5% of US production this year.
Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, shared his fundamental view of the hog futures market by stating, “China’s insatiable demand for pork runs deep in their culture.” Brady adds, “This comes at a time when the piglet-killing disease two years ago forced domestic culling and we’re trying to rebuild our domestic herds.”
Hog futures have resumed their uptrend only recently. There is no top in sight for this market so expect prices to be passed on to the consumer.