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Bloomberg reports U.S. pork production is poised to reach an all-time high in 2018 and rise again in 2019. Tariffs from China and Mexico threaten to curb export demand, leaving more pork at home.
Record output with threatened export outlets pushes domestic pork values lower, making pork cheaper for feed-linked buyers. Losing export demand is the key downside driver for hog prices.
bloomberg.comMegan Durisin Albery, Justina VasquezJul 13, 2018After 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.
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 2018-07-13, just before the drop, it highlights record US pork output and tariff-threatened exports, which would push more pork onto the domestic market and weigh on hog futures.
