Hog Market Outlook for 2022

The latest Quarterly Hogs and Pigs report showed inventory of 74.2 million head, down four percent from the same time in 2020. Economist Dr. Steve Meyer with Partners for Production Agriculture says the report shows hog supplies will still be rebounding next year, and prices are good.

“I cannot get very close to them in my models based on fundamental supply and demand, so, I think they should be really being pretty aggressive about pricing animals, especially if they can execute a strategy that with call options or something that leaves the top side of this market open to them.”

Producers looking at marketing in the new year are wondering about consumer demand, as 2021 was a demand driven market. Get to where those futures prices are in the summer, we’ve got to have some strengthening of demand from where it is at the moment. I think it will bounce back some, I think we had some changes of habits and such during the COVID shutdowns that will benefit us in the long run, but that’s going to be the key on whether we can get these hogs up bumping $100 like the futures say right now.”

Export opportunities in 2022 will see growth in key areas NPB focuses on in their International Marketing Strategy.

“We think that exports are going to grow just a bit this year from last year’s level, but it’s going to be Mexico, Canada, the Philippines, South Korea, Japan, South American countries, it’s going to be those that drive the growth. We don’t think China’s going to be a factor in that at this point.”

Meyer says there is some optimism ahead and supplies will be larger in the second half of the year. With good prices on the board, that can lock in some decent profit margins, even with high cost of production.  Producers can visit porkcheckoff.org for more market insight.

Related articles

Thursday and Friday, November 24th and 25th, 2022 Programs

***No video interviews for our holiday programs on Thursday and Friday. Markets were open for a shortened session on Friday as well. Below are links to our Thursday and Friday episodes with various interviews...

Biden Wants Rail Unions, Freight Railroads to Settle Contract Dispute Themselves

President Biden wants rail unions and freight railroads to resolve their long-running contract dispute themselves, without saying publicly if he’ll intervene or ask Congress to do so, barring an agreement. Biden Press Secretary Karine Jean-Pierre...

Wednesday, November 23rd, 2022 Video and Audio Program

Overall, trade on Wednesday was fairly quiet headed into the Thanksgiving holiday. We did find some late buying interest in grains on the session and in turn, slipped lower in cattle and hogs on...

Farm State Senators Vent Over High Diesel Prices 

High input prices helped fuel debate over the next farm bill at a recent Senate Ag Committee hearing. High diesel prices mean high food prices, as farmers and truckers struggle to pay an average...

USDA Invites Producers to Respond Online to the 2022 Census of Agriculture

The USDA mailed survey codes to all known U.S. ag producers with the invitation to respond online to the 2022 Census of Agriculture at agcounts.usda.gov. The ag census is the nation’s only comprehensive and impartial...

Latest articles

%d bloggers like this: