PORK

Prices will continue to take on a balanced tone through the end of May as supplies show signs of improving while demand will continue to vary by marketing channel. Pork production will be flat to year-ago levels, and will decline as the normal seasonal trend dictates. Expectations for hotter weather in key pork producing states (MN, IA, NC, etc.) will pressure hog dressed weights lower, implying there is some risk to take into account. Retail demand will benefit from trade down from higher-priced proteins while Foodservice demand will be challenged by lower transactions counts. Export demand will remain strong in coming months as demand from Mexico and Asia remains firm while U.S. pork prices are very competitive relative to other pork exporting countries.