As Exports Impress, Can Lean Hog Prices Push Even Higher into 2021?
Tyne Morgan, FarmJournal's Pork
October 13, 2020
Pork exports continue to be a positive story in 2020. As the hunger for pork from other countries continues to grow, China is leading the charge and helping push hog futures to eight-month highs.
“China is really driving that right now, and I think why you're seeing the demand side really pull those futures prices higher, especially with all the uncertainty about the supply situation,” says Lee Schulz, Iowa State extension livestock economist. “I think it's expected. We have tighter supplies, but demand is driving where we're seeing prices in 2021, potentially.”
China’s strong appetite is a leading factor, as African swine fever (ASF) cases in Germany could cause EU’s pork exports to China taper off. That could also be another boost for U.S. pork exports.
All of this comes as the latest Chinese government statistics show China is rebuilding its sow herd, after ASF decimated its herd the past few years. The Ministry made clear its goal is to hit pre-ASF levels of 43.9 million head by the end of 2020, and is currently building the infrastructure to help reach those levels.
“I think you have to believe the rebuilding and expansion action is taking place,” says Schulz. “I think we're seeing expansion in China...
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