Pork Futures Continue Record levels

June 20, 2006 — 

Since dipping to 25% below 2005 prices in mid-April, lean hog futures have rebounded significantly. As of June 19th, the IA/MN lean hog carcass price as reported by USDA was $80.67 according to the Chicago Mercantile Exchange's Daily Livestock Report (DLR).

Hog futures are currently trading at almost 18% above 2005. July and August pork belly contracts are approaching highs set last October. Dr. Steve Meyer hypothesizes that a number of factors (including aggressive market promotions, good retail margins, strong export market and supply issues resulting from porcine circovirus infections) have contributed to this dramatic turnaround in hog futures.

Source:
CME Daily Livestock Report, June 19, 2006