Hog prices are expected to increase this year, even as pork production is expected to increase by three percent, according to a Purdue University agricultural economist. Christ Hurt writes that stronger demand will support prices because of a growing U.S. economy, and by a robust eight percent growth in exports as projected by the U.S. Department of Agriculture. Hurt says new packer capacity is also expected to contribute to stronger bids for hogs. Also, feed costs will be the lowest in a decade, and total production costs are expected to be at decade lows.
Based on USDA numbers, Hurt says pork supplies are expected to rise by five percent in April and May and then drop to a four percent increase for June through August. Three percent more pork can be expected for September through November of 2017 with supplies up one percent this coming winter compared to year-previous levels.
Source: NAFB News Service