The Director of Risk Management with HAMS Marketing Services is encouraging pork producers to watch for rallies in the futures market over the winter months that could allow them to reduce their losses.
The Director of Risk Management with HAMS Marketing Services says shifting pork demand, due to COVID-19, is making it extremely difficult to assess the role of demand in influencing the value of live slaughter hogs.
The Director of Risk Management with HAMS Marketing Services is hopeful Chinese demand for U.S. pork will lead to higher hog prices in 2020.
In light of sharp drops in the futures, the Director of Risk Management with HAMS Marketing Services recommends a disciplined approach to forward pricing.
The Director of Risk Management with HAMS Marketing Services is blaming a record availability of U.S. slaughter hogs combined with a reduced holiday slaughter schedules for a dramatic reduction in North American live hog prices.
HAMS Marketing services says, despite unprecedented growth in North American hog production, there’s good potential for further upside movement on the 2020 hog market but prices will remain volatile.
HAMS Marketing Services says improved export sales will be needed in all markets to realize better prices during the fourth quarter.
HAMS Marketing Services is advising swine producers to watch for any rallies in the futures market and consider locking in fourth quarter hog prices.
HAMS Marketing Services says unprecedented growth in U.S. hog production combined with continuing uncertainty over the impact of African Swine Fever on export demand for pork are resulting in continued extreme volatility in North American hog markets.
The Director of Risk Management with HAMS Marketing Services suggests, given the current strong futures prices, pork producers should be looking at forward contracting about 20 percent of their production at current prices and another 10 percent for each ten dollar increase in prices.