U.S. hog prices are being supported by strong demand, according to Purdue University economist Chris Hurt. He says pork production is expected to rise by 3 percent in the first-half of 2018 and by near 4 percent in the last-half of 2018. The theme for the pork market in 2017 was higher production and higher prices when pork production rose by 2.5 percent and hog prices were up 10 percent. The reason was strong pork demand around the world. That was led by bacon demand in the U.S. where retail prices were up about 7 percent and by pork exports expanding around 7 percent.
For 2018, Hurt says the futures market appears to be following demand, as the U.S. economy is expected to grow more rapidly this year, with a drop in unemployment, along with the world economy expected to be the strongest since the 2008-2009 recession.
Source: NAFB News Service