USDA’s January World Agricultural Supply and Demand Estimates (WASDE) report is calling for lower pork exports. The agency is cutting pork exports by 405 million pounds, AgDay’s Clinton Griffiths reports.
They say the cut this month reflects the fact that China has been buying less pork.
Although hog prices in China remain below record levels seen over the last few years, they have improved since bottoming out in the fall. Analysts expect smaller producers will struggle in the current price environment; however, large operations will try to cover the high fixed costs associated with rapid expansion and modernization as long they can cover their variable costs, at least in the short term.
“China is buying less pork, not only from the U.S., but also from other suppliers. By China buying less pork that reduces our own exports directly to China, but it also means that other countries that were exporting to China are now looking for other markets to market that pork and that is also competing with U.S. exports,” says Mark Jekanowski, World Ag Outlook Board Chair.
Overall, the U.S. meat trade forecast is down 459 million pounds, with most of that due to reduced pork exports.
Read More:
