Overview: Today we see reports that cash hog prices are expected to remain steady to firm despite the network breach at Americold that has affected several pork processing plants and the fire at the Tyson Foods pork plant in Madison, Nebraska, which will be closed until the second week of May.
Market Analysis:
Cash hog prices are expected to remain steady to firm despite the recent incidents in the pork industry. This is because as we head into Monday, it is expected that individuals will use the day to conduct market testing and evaluate their post-weekend inventories.
Hams are being called steady despite supportive export demand from Mexico. In the belly category, there is an unsettled call due to lackluster foodservice and retail interest in bacon. In the trimmings category, 42s are called steady, while 72s have a softer bias on fully adequate supplies. Bone-in loins are expected to be mostly steady, while boneless loins are called mixed. In the butt category, bone-ins are called fully steady on supportive pulled pork interest, while boneless items are called steady, though international demand has been noted. In the rib market, spare ribs are called mixed, while St. Louis ribs and back ribs are called steady.
In other news, Smithfield Foods announced that it will close more than 30 sow farms in Missouri beginning May 1, and Tyson Foods Inc. does not expect to resume production until the second week of May at a pork plant in Madison, Nebraska, following a weekend fire. However, Tyson has been diverting pigs to other processing plants to prevent a backlog of animals on farms, which will help prevent a surplus of pork in the market.
The bottom line: Despite the recent problems in the pork industry, the pork market is expected to remain stable. Pork prices are expected to remain steady to firm and the pork industry is expected to continue operations with some adjustments. We will keep you informed of any new developments in the market.
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