Inside: Pig Market
Will US pig price continue to rise?
The US swine industry has never exported as much as in 2017. With a volume of 2,45 million tons, the previous export record from 2016 has been surpassed by 6%. This is according to figures from USMEF, the American agency for meat export. What does this do to the pig price?
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The growing export volume coincides with the ever-increasing pork production in the United States (US). USMEF chairman Dan Halstrom says that additional foreign sales are needed to accommodate growing meat production. In 2017, more than a quarter (26,6%) of the total production was exported.
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The growing export volume also increases the underlying value. This amounted to $6,49 billion over the past year, 9% higher than the long-term average and the second highest amount ever. Especially in the first months of 2017, the monthly export volume was ahead of previous years.
However, from June onwards (with the exception of October), a fraction less was shipped than in previous years (particularly 2016). For example, the export volume in December (219.809 tons) was 1% below the level of last year. On the other hand, the underlying value was 5% higher at $591,1 million.
Pig prices are picking up
The American pork price (the Iowa/Minnesota quotation) started to rise last October and has since risen by approximately $0,50 per kilo: to $1,55 per kilo in early February.
The question is whether the pork price will continue to rise this spring, level off or sink. A year earlier (2016/2017 season), a similar scenario took place in the same time frame, but then the ranking dropped towards April. The year before, the listing continued its upward trend until the summer. 
The US pork price is rising, albeit in fits and starts.