Pork Profit Maximizer – Food Service Edition
April 29, 2019
After the fireworks in the previous two reports the latest USDA weekly pork export update was much more muted. Bullish traders are constantly looking for more information that US pork supplies will tighten up due to strong exports. This latest update did not contain that. While pork exports in the last four weeks have averaged 23% higher than a year ago, keep in mind that some of this product was bought when US pork prices were cheaper. The question for the market is what the reaction from trading partners will be now that US pork prices have escalated. The initial response has not been positive and that is understandable. Export sales to Mexico in the last four weeks have averaged 71% lower than a year ago, export sales to Japan were down 21% and export sales to South Korea were down 27%. Even Canada, which has been very active in the US market, appears to have backed off at this time, with net sales in the last four weeks down 33% compared to a year ago.