Hog futures have halted their first-quarter slide and appear to be making their way higher as record production of hogs is reportedly putting more pork on the menu. Hog futures are up over $1.52 per CWT and are currently trading at $65.07 (CWT) at the Chicago Mercantile Exchange.
Wholesale prices of pork are down 40% since last summer and more restaurants are reportedly buying more of the product to serve and apparently this is creating demand. With prices so low compared to beef, domestic pork production is heading for an all-time high this year.
“With all the extra pork supplies out there, restaurants of all types are seeing the value and creating more items to serve to the public,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, regarding the fundamental assessment of the hog futures markets. Medina added, “The hog trade appears to have picked-up on the demand and stopped the early year onslaught.”
The trend for hog futures appears to be in a very early stage of an up-trend. Prices are still low enough for pork lovers to enjoy their favorite sandwiches or dishes, but a breakout above $72.00 (CWT) could mean steadily higher prices down the road.
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