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Supply concerns pressure hog market

Hog markets – both cash and futures – have had a difficult time finding any price support as of late.

University of Missouri livestock economist Scott Brown says supply and demand concerns along with the lack of significant progress on trade deals has put a lid on price movement.  “It’s hard to generate higher hog prices when you see what’s been happening with that pork cutout value – as bellies and hams haven’t really found a lot of strength of late,” he says.  “It just reminds us that from here to the end of the year without some very strong trade news it could be a tough period for pork producers.”

And, he tells Brownfield, the longer the US goes without a trade deal in place with large trading partners like China and Japan – the harder it becomes to get an agreement in place.

Brown says that’s not the only concern.  “Whether we get a lot of trade once that happens is equally as up in the air,” he says. 

Brown participates in the Weekly Livestock Market Update on BrownfieldTV.  New episodes are available online every Friday at BrownfieldAgNews.com.