Hook space is growing along with the current pork herd, and pork prices have been feeling pressure.
According to Craig Van Dyke of Top Third Ag Marketing’s risk management team, demand is starting to pick up in the midst of lower prices.. Roughly this time last year, he said the hog market found a bottom, similar to what producers are experiencing now.
“We’re moving toward the right direction to the upside,” he said.
New processing plants in Iowa and Michigan that came online last month are slowly ramping up production. VanDyke says if these facilities are at full capacity, he’s not sure if there will be enough demand to turn prices.
“Maybe there’s a few different factors that grow foreign demand, but ultimately, that’s where we need to see it come from,” said VanDyke. “If not, we’ve got a big concern considering supply.”
Hear his thoughts on domestic demand on AgDay above.