Forward Hog Contract Prices Drop
by Cory Knutt, Pembina Valley Online (Canada)
08 May 2019
There's been a sharp downturn in forward hog contract prices.
Tyler Fulton is the director of risk management with Hams Marketing Services.
"We've seen a sharp downturn in forward contract values as a function of the U.S. lean hog futures dropping sharply," he said during an interview on Tuesday. "The last couple of days, we've seen limit down moves and it was largely in response to the tweet from President Trump regarding tariffs and trade with China."
Fulton says Trump's comments are having negative implications on the pork markets, adding U.S. and Canadian producers would like access to the Chinese market during the current African swine fever outbreak.
He notes the U.S. cash markets have been a different story.
"Cash markets are holding relatively steady. They're performing slightly better than what they normally would at this time of year, but they are disjointed really from the futures trade. The value of the pork that the packers are selling, has generally made better gains than what we typically would have seen at this time of year."