Hog prices have dropped sharply since hitting record highs in the middle of July.
It turns out PED (porcine epidemic diarrhea) virus took a smaller toll on U.S. hog supplies than was expected, explains Tyler Fulton, director of risk management for Manitoba-based Hams Marketing Services, in the interview below.
Fulton says traders were expecting an 8-10 percent drop in supplies due to PED, but heavier hog weights limited the impact.
Russia’s ban on North American pork has also contributed to the price slide, but only in a small way — maybe accounting for 2-3 per cent of the drop in pork prices, he says.
So what does this mean for the consumer price of pork? Fulton says there could be some sales on bacon in the grocery store in the near future, but the long-term impact of PED will continue to support higher pork prices.
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