David Bauer, senior market analyst with Provimi says don't look now, but since the $47.87 low on July 31, October hog futures have rallied more than $11, or 25% in the past 24 sessions. Thursday's high of $59.40 is the highest high since May 5. Per his quote system, the 33,000 contracts traded on Thursday were a life-of-contract high volume trade.
In this episode of Feedstuffs Precision Pork, Bauer also talks trade and China. How do we correct a shortfall and purchases that made in a trade agreement? Well, we put on our buying shoes and get to work, he says.
Unfortunately, this week's U.S. monthly pork export report put July's pork sales to China at the lowest total for any month of 2020 thus far. But year to date, U.S. pork muscle cut exports to China of 261 metric tons over last year and 27% over that of 2018 year to date. The price of pork in China in the last week of August climbed to the highest price so far in 2020, yet was still 5% below the record in the last week of October in the fall of 2019. What’s ahead for China and trade overall? Bauer shares his thoughts.
As Bauer points out, these are uncertain times and it will pay dividends to be well-prepared. If you have questions on this week’s recap or want to discuss something not covered, feel free to ASK DAVE at David_Bauer@cargill.com. Plan today for tomorrow’s success.