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US pork exporters face a slowdown in China's pork demand as Chinese live hog prices fell from nearly $2.50/lb at the start of 2021 to about $0.90/lb on June 22 before rebounding to $1.15/lb in early July. China has shifted from releasing pork reserves to buying pork for price stabilization.
Weaker Chinese pork demand reduces import needs and cuts US meat export opportunities, which weighs on hog prices and feed demand. Competition among exporters is expected to intensify.
nationalhogfarmer.comU.S. Meat Export Federation StaffJul 14, 2021After 123 past bearish trade events, Lean Hogs moved a median -0.4% over 5 sessions (43% higher; middle half -2.9% to +2.0%), and -0.2% over 20.
After 683 past bearish trade events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.7% to +1.6%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Published July 14, one day before the drop, it flags weaker Chinese pork demand and lower Chinese hog prices, which could weigh on US export-demand sentiment and hog futures.
