Pork Stocks Expanding, Prices Improving, Export Demand Growing

WASHINGTON, DC – USDA is projecting ending stocks for pork in the United States during February 2021 to grow 24 percent above levels last February. Based on data from USDA’s Cold Storage stocks report, ending stocks of domestic pork sat at 491 million pounds, and with hog prices expected to average more than 29 percent above prices last year, the Economic Research Service (ERS) says it is unlikely pork stocks will build to pre-COVID-19 levels in 2021. Pork stocks have remained significantly below 2020 levels since last spring, in response to turbulence in the U.S. pork processing sector related to the COVID-19 pandemic. Back in May, stocks fell more than 23 percent from April 2020 levels because of major disruptions in pork production, including several temporary processing plant shutdowns. By February of this year, ending volume represented about 22 percent of February’s estimated federally inspected pork production while a more typical stocks-to-production ratio for the month is about 29 percent. USDA is forecasting prices of live equivalent 51-52 percent lean hogs to average about $56 per hundredweight, 29 percent higher than hog prices averaged last season. The increase reflects expectations for continued robust consumer demand for pork products.
(SOURCE: All Ag News)