News

USDA expects higher hog prices, dependent on export demand

The USDA has raised its 2019 price outlook for barrows and gilts, while lowering the expectation for steer prices.

Barrows and gilts are now expected to average $54.50 per hundredweight this year, up $8.50 from March, on higher domestic prices and expected strong export demand, with the annual sales projection up sharply from a month ago at 6.246 billion pounds. However, that’s dependent on several factors, including trade negotiations with China and Japan, and the implementation of the USMCA.

Steers prices are seen at $118.50, down $1 on the month, with the department anticipating continued price weakness.

The USDA did lower 2019 pork and beef production estimates slightly to 27.269 billion and 27.323 billion pounds, respectively, and made very modest changes to per capita consumption expectations.

The USDA’s next set of supply and demand estimates is out June 11th.