Pork Profit Maximizer – Food Service Edition

May 13, 2019

Trade talks and tariff outlook is driving volatility not just in the hog futures market but the wholesale pork market as well. In late March and April, pork buyers had to take one glance at the June and July contracts and calculate the potential price increase for the specific cuts they normally buy. The items more vulnerable were those that, based on experience, have shown to have very inelastic demand, namely bellies and trimmings. Fears that packers would be hard sold during those months as they sought to fill export orders likely caused buyers to jump in the market looking to cover not just immediate needs but also build safety stocks.