Pork Prices Plunge: USDA Report Reveals Bearish Trends!

Ladies and gentlemen, buckle up! The latest USDA Hogs and Pigs Report is out, and it's a doozy. The numbers are in, and they're not pretty. The total inventory of hogs and pigs is up, and the breeding herd is down to its lowest level in a decade. This is a bearish report, folks, and you need to know what it means for your portfolio.

First things first, let's talk about the inventory. The total inventory of hogs and pigs on June 1st came in at 75.1 million. That's up about one percent or 390,000 head from the last quarterly report. This is the highest inventory since June 1st of 2020. That's right, folks, we're talking about a significant increase in supply.

Now, let's talk about the breeding herd. It's down to the lowest level in a decade. Why? Well, cash hogs are running around $106 per hundredweight. That's a solid price for this time of year, but it's not enough to keep the breeding herd from shrinking. The market is telling us that there's too much supply and not enough demand.

But here's the thing, folks. Demand is picking up. We're seeing increased demand in the pork sector as a substitute for these record-high beef prices. That's right, consumers are turning to pork as a cheaper alternative. This could be good news for pork prices in the long run.



But for now, the market is bearish. The increased supply of hogs is putting downward pressure on pork prices. This could be bad news for pork producers, but it's good news for consumers. Pork chops are down around four percent, so we're seeing some relief at the retail level.

So, what does this mean for your portfolio? Well, if you're a pork producer, you might want to think about hedging your bets. The market is telling us that there's too much supply and not enough demand. But if you're a consumer, you might want to stock up on pork. Prices are down, and they could go even lower.

In conclusion, the latest USDA Hogs and Pigs Report is a bearish one. The total inventory of hogs and pigs is up, and the breeding herd is down to its lowest level in a decade. But demand is picking up, and that could be good news for pork prices in the long run. So, stay tuned, folks. The market is always changing, and you need to be ready to adapt.