PALATINE, Ill. (RFD News) — Analysts are closely watching supply and price trends in the hog market heading into the summer months.
Allendale, Inc. Chief Strategist Rich Nelson says the expected seasonal decline in hog production is already underway.
“We’ve been pointing out that the seasonal drop in production has happened,” he said. “So far, no real change in cash hog prices, a slight increase for cash pork. Still, overall, though, quite a disappointing story. Seasonal drop in supply is happening on target, but the price reaction is not happening on target, though.”
The next USDA Quarterly Hogs and Pigs Report is scheduled for release on June 25.
Traders will be watching for updated inventory numbers and any signs of changes in production trends.
Producers may need to prepare for margin pressure in livestock feeding, while dairy farmers could benefit from stronger product demand.
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