Analysts shave millions of pounds off of pork’s production forecast
The pork export forecast has declined amid lower production and a strong dollar.
USDA decreased the forecast by 105 million pounds this year, carrying it through to next year. This month alone, the Agency shaved 235 million pounds off the forecast and 109 million on the year. USDA’s Mark Jekanowski says hog prices have also been reduced.
“We reduced it by $3 per hundredweight down to $66.75 per hundredweight. A couple of things are driving that, including our expectations for relatively weak demand — that’s starting to show up — also higher poultry supplies. Higher supplies of competing protein, competing with pork and driving those hog prices lower.”
The lower forecast equals a year-over-year price decrease of around $4.33.