Slowing Pork Demand Sinks Hog Futures

The combination of high wholesale pork prices and a rising dollar putting the kibosh on US exports are said to be the culprits for the plummeting hog futures.  The outlook is for domestic pork products to continue to wane and this view has been reflective of the hog futures chart since the end of June.

The USDA has reported wholesale pork prices up 29% this year after reaching $111.33CWT in late June – the highest price since the 4th Qtr 1997.  As the US Dollar has climbed to a three-year high against other major currencies, US exports have reportedly dropped 13% the first five months of this year compared to the same time in 2012.
Kevin Riordan, director of research at Capital Trading Group in Chicago, had this to say regarding the current hog futures situation, We expect export demand to slow for while as the market digests the duel effects of a rising US dollar and new record highs for wholesale pork (prices).”

Although the sell-off since late June, hog futures trend is still technically up.  As the dust settles with this market, I still will continue to look for low-risk buying opportunities until the picture changes.


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