Prepared and written by Jeff Swenson, DATCP Livestock and Meat Specialist. The Market Update draws information from several sources, including trade publications, radio broadcasts, agricultural news services, individuals involved in the industry as well as USDA NASS and AMS reports.
Pork prices have not moved up or down significantly in recent weeks. The comprehensive pork cutout value rose $3.18 last week to average $97.56. Those hoping for a continued upward trend were disappointed Monday. This is because all primals except the rib were lower, bringing the value down to $96.66. Cash hogs were $1.60 higher last week, with a national base carcass average of $88.21/cwt. Pork production was higher last week with estimated harvest totaling 2.486 million, 56,000 head more than the previous week and 83,000 more than last year.
Weekly exports recovered somewhat after China canceled a 12,000 metric ton shipment two weeks ago. It was the largest cancelation since May of 2020 when COVID-19 was impacting the world economy. China’s tariff on U.S. pork is 172%, making pork produced here uncompetitive. China is the major buyer of variety meats. It is estimated that the pork industry will experience losses of $8-$10/head across the supply chain while the tariffs are in place, resulting in about a billion-dollar-a-year loss if the trade standoff continues.
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