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Outlook for pork prices is middle of the road

An ag economist says his outlook for the swine market is ‘not terrible, but not great.’

Steve Meyer with Partners for Production Agriculture tells Brownfield right now, based on Iowa State University’s cost and return analysis for pigs, the ‘low cost’ 25 percent of producers could make a profit…

“They could lock in about $7.50 head profit for the year,” he said. “That would put that average producer at a loss of probably about $2 to $3.”

He said current futures prices for hogs are higher than what he thinks the cash market will be, leading to some pricing opportunities.

“On the grain side, if we get a little sell-off, put a lid on those grain costs and try to leave the bottom part of that market open,” Meyer said. “On the hog side of course, if you can put a floor under those prices and leave the top open that’s a great strategy as well.”

Meyer said the biggest risk to the market in 2021 is disease such as African Swine Fever not allowing pork exports. Meyer spoke at the Missouri Pork Expo in Osage Beach.