Pork is getting pricier as foreign buyers, especially China, look to the U.S. to supply their meat demand. China lost millions of pigs last year to an epidemic, African swine fever, leaving them facing a pork shortage.
Meanwhile, U.S. slaughterhouse demand is finally returning to pre-COVID levels. For months, U.S. meatpackers had slowed down or shuttered plants as a result of COVID outbreaks in their tightly packed facilities. Rising domestic demand is helping hogs rebound from the abysmal low they reached in April of 37 cents.
Despite the 60% price gain seen since April, Friday’s price of 59.5 cents per pound for October lean hog futures is still too low for many pig farmers to make a profit, leaving them hoping for even more demand.
Unfortunately, they likely won’t see the demand from American grocery shoppers, who have been slowing their meat purchases and are likely to buy even less after Labor Day, traditionally the end of the summer grilling season.
Beans climb on exports
Soybeans exceeded a two-year high on Friday, valued over $9.70 per bushel.
The market has been soaring higher predominantly on Chinese demand; China is the world’s largest soybean importer and has been aggressively contracting to buy this fall’s U.S. soybean harvest. China broke records with its purchases of last year’s crop and is expected to buy even more this year.
Despite its protestations that China has sufficient food, the Asian giant was the top buyer of U.S. corn, wheat, and pork exports last week, as well.
September 06, 2020 at 01:09PM
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Futures File: China boosts pork and beans - Oklahoman.com
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