Pork Prices Stagnate Despite Steady Supplies

The US pork production has seen a steady supply of hogs this year, but the prices have not kept pace with last year's levels. According to David Anderson, Ph.D., AgriLife Extension economist at Texas A&M Department of Agricultural Economics, hog prices have surged in recent weeks as production has come down slightly.

Despite the steady pork supplies and lower input costs, producers are not seeing the same level of profitability they were last year. The farrow-to-finish producers have logged 25 straight months of profitability, but it's driven mostly by cheaper feed and corn rather than strong hog prices.

The nation's sow herd has declined for years, and production gains are coming from record numbers of pigs born per litter and heavier carcass weights. However, the lack of production growth is largely due to the high construction and financing costs associated with building new sow facilities.