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Ideal growing weather, lower feed costs, and good overall herd health combined to boost pork supplies and lower hog prices in recent weeks, according to Rabobank's North American agribusiness review - June 2024.
Hog slaughter is up 2.9% year-on-year on improved hog availability and higher sow slaughter. Hog supplies are likely to remain high in the coming weeks given the 2% year-on-year increase in the December/February pig crop. Weights also remain steady (+1% year-on-year) and are not showing any signs of a seasonal decline on warmer weather.
Conditions have combined to keep pork production above expectations, weighing on packer demand for hogs. Negotiated hog prices remain seasonally soft (USD 88 per hundredweight) but are flat with year-ago levels. Producers are profitable at current prices but concerns regarding fourth quarter 2024 supply remain an overhang.
June 2024/ Rabobank.
https://research.rabobank.com
