U.S. hog prices 2016 at a low level

Preview on the U.S. pork market barbecue brings only temporary price relief

In its monthly Preview on the agricultural markets the U.S. Department of agriculture (USDA) estimates the average of the year 2016 rising pork production by around 2%.

As usual is generating high values of the 1st quarter on low amounts of battle during the summer months. In the warm season, the daily increases are low and return the slaughter weights.

 The increasing demand in the BBQ season causes that the prices in the II and III quarter of above-average fail to the annual average. For 2016, is no longer reached the high level of the previous year, the USDA predicts.

With increasing production and decreasing demand in the 4th quarter the American pig prices will under the $1 / kg drop. The prices refer to the national average. The courses can vary in the priority areas of the U.S. pig farming.

The exceptionally high prices in the year 2014 are the PEDv epidemic due to, caused about 15% higher piglet losses.

The U.S. pig farming has since recovered. The increasing production quantities are consumed but only partly in their own country. A rising amount of pork is exported again. Yet the Americans have difficulties due to their comparatively high U.S. dollar, which makes expensive goods compared to the competitors. Pork produced with use of the growth promoter Ractopamine is not tolerated in China.

The U.S. sales towards China has reduced considerably. The EU denies instead almost 80% of China's imports.

Low U.S. hog prices set for the EU a certain upper bound for the price process at EU level. Finally, the EU ahead of the Americans is one of the largest exporters of pork at the world level.

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