The ag markets have been buzzing with anticipation this week for a pair of reports from USDA – the June Acreage Report and the Quarterly Grain Stocks Report. Both have the potential to be trendsetters for the grain markets. But one report hasn’t seen a lot of pre-release spotlighting is the quarterly snout count from USDA, the Quarterly Hogs & Pigs Report.
Pro Farmer Editor Brian Grete and Sr. Market Analyst Jeff Wilson visited with AgriTalk After the Bell host Chip Flory on Tuesday’s ATB to get growers ready for the H&P Report. Of course, the report is expected to show the hog industry remains in an expansion phase, but Wilson was quick to bring the conversation back to demand.
“We’re producing a lot of pork right now, but our consumption is very good. Pork is very competitive at the meat case and with low unemployment, that’s a good sign that meat demand in general will remain strong through the summer months," said Wilson.
Grete explained the trade tensions with Mexico and China do leave the hog market vulnerable to a demand slump, but also warned that any indication of progress being made on NAFTA or Chinese trade talks could be enough to chase the selling out of the “overly bearish” grain and livestock market.