Global Pork Production Expanding
USAgNet - 04/23/2012
World pork production is expanding. USDA's Foreign Agriculture Service is predicting that this year's world pork production will be up 2.7 percent from 2011.
China, the third largest buyer of U.S. pork last year, is expected to increase its pork production by 4 percent this year. Pork production in South Korea, last year's number five foreign customer, is expected to be up 17 percent. Increased foreign production could hurt U.S. pork exports. Last year the U.S.
exported a record 22.8 percent of our pork production. Given the weak economy, strong exports are crucial to hog prices.
Calculated domestic pork demand during February was up 0.6 percent compared to a year earlier. Export demand for U.S. pork was up 1.6 percent in February. Packer demand for hogs was 1.6 percent higher this February than last.
Retail pork prices in March averaged $3.49 per pound, down half of a penny from February, but up 13.3 cents from March 2011.
The average live price for 51-52 percent lean hogs in March was $61.86/cwt, down $2.08 from February and 77 cents lower than in March 2011.
