U.S. hog exports are showing strong demand, and the return of a key buyer could mean even more momentum ahead.
Recent USDA data confirms pork sales to China moved notably as trade tensions begin to ease. Analysts say that it is a positive sign, especially with pork already performing well in recent weeks.
Market analyst Ted Seifried says that pork could be one of the biggest winners from the cooling-off period:
“You know, with that ongoing trade war, although it’s cooled off, it’s great to see China business in there, especially for pork. I’ve been saying for a while that pork might be the biggest beneficiary of this 90-day cool-off period.”
Even before China reentered the picture, pork exports had been running strong. Chip Nellinger says that the added business is a welcome sign for demand.
“You know, even without China in there, it was a strong week. You throw them in there, that’s got to be good news on that demand front. So, but, you know, that demand looks really, really good. And that’s what the third, fourth week in a row here that exports have been pretty stellar in the pork.”
With port fees now lifted, economists believe that could help ease tensions. However, American Farm Bureau Federation (AFBF) economist Faith Parum said trade deals with smaller Asian countries are helping stabilize the ag economy.
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