Pork Supply Grows while Demand Remains High, and Prices Drop
According to the latest USDA report, hog and pig inventory in the United States reached 75.1 million head as of June 1. This marks a one percent increase from the last quarter and is the highest number since mid-2020. The rise indicates a bearish market due to supply growth.
Despite the increase, pigs retained for breeding have decreased. The current breeding herd is at its lowest level in ten years. This signals that farmers are holding back on future production, possibly reacting to past losses or market uncertainty.
Interestingly, pork demand remains strong. Consumers are turning to pork as a more affordable option compared to record-high beef prices. This demand is helping balance the market, offering some stability even with higher overall hog numbers.
The report noted, “If we take a look at like our 4th of July cookout survey, we had pork chops down around four percent,” showing that consumers are benefiting from lower retail prices.