Pork Profit Maximizer – Retail Edition
Lean hog futures have declined sharply since the beginning of July on concerns that slowing export sales and record production will force more product into domestic channels. The two markets where US pork now faces new tariffs are China and Mexico. Two rounds of 25% tariffs on US pork in China and the normal 12% tariff on frozen US pork have effectively closed this market to most US product. The weekly pork export report published by USDA-FAS on Thursday shows pork exports to this market at zero for the last two weeks and a mere 17 MT per week in June. Net sales have been minimal recently as well. Last year US sales of fresh/frozen and cooked pork to China were 380.4 million pounds, on a carcass weight basis. Sales in the second half of the year were 155.4 million pounds.