Hog prices exploded this week, moving the exchange-maximum “limit up” on Thursday and Friday. Prices leapt after news broke of a large Chinese purchase of U.S. pork.
China’s ongoing battle with the African Swine Fever outbreak continues to wipe out its domestic hog herds, which should be boosting demand further for U.S. meat. However, retaliatory tariffs on U.S. pork exports have stifled Chinese demand for U.S. hogs, keeping our prices low.
Prior to the explosive rally, December hog prices touched contract lows under 58 cents per pound, reflecting the general bearishness of the market.
However, the extreme negative sentiment turned around by Friday, with the market locked limit up at 68.7 cents per pound, a sign that buyers will likely pay even more on Monday.