Bloomberg-USA at their ends can reduce breeding herds producers due to the high cost of feed, signaling a continued Rally pork prices already predictions climb more than any other food this year.
5745 million sows held back for reproduction by 1 March, 0.3 percent from 5.76 million a year earlier, according to a Bloomberg News survey of 10 analysts. This would be 0.6% less than three months earlier. The u.s. Department of Agriculture will release its quarterly assessment of stock at the ends at 3 p.m. today in Washington.
Increase demand for pork USA helped the Chilean wholesale prices for a six-month high this week. Even with extreme futures up 25 percent in the past year, producers are reluctant to deploy because costs have almost doubled for maize, the main components of the feed. The Government estimated today that shoppers can pay as much as 7 percent more for pork this year. This is from last month's projection for a jump 5.5 percent to 6.5 percent.
"The livestock industry is very nervous about the cost of feed, and so to achieve a feeling for the kind of corn cultivation will go to produce, we are likely to see much change in size of sow, "said Ron plain, a livestock Economist at the University of Missouri in Colombia. "We're going to have a high meat prices because we have a rather small herd there today, so that meat production will be down this year."
Producers without compensation strategies has lost about $ 7.20 for each animal sold in the three months through December, said Rich Nelson, Director of research at Allendale Inc. in Mchenry, Illinois. That compares with a loss of $ 6.42 in the year-earlier period, and net profit of 83 cents a head three months through November, Nelson said.
In February, the producer's profit was 90 minutes each at the ends, with rising export demand encouraged slaughterhouses to pay more for animals, Nelson said. Spot market prices rose to 81.51 cents pound on 24 March, 22 percent from a year earlier. Normally, farmers should see profits for about six months immediately prior to the start of the expansion, he said.
Before today, corn prices surged 92 percent from a year earlier and went 31-month on 22 February.
U.s. pork output can be about a half percent because of heavier animals, he said. The average carcase at the ends on 23 March Weighed approximately 1.6 percent more than a year earlier, and 6.59 resulted in 211 pounds (96 kilograms) on Jan. 7, 2002, the heaviest at USDA data show. A growing population of the u.s. and higher demand for exports will maintain per capita supply of meat, pork prices strengthened tight, simple said.
The average retail price for pork chops Word $ 3.48 a pound, up to 8.5% in February from a year earlier and the biggest since at least April 2007, according to the Government. Boneless ham was dearer by 10 percent, and sliced Bacon jumped 20 percent.
Fast-food chain Jack in the box Inc. saw "significant increases" pork spending in the first quarter, Chief Financial Officer Jerry Insubordinate said last month. Cracker Barrel old country store Inc., the operator of 42 members, 599 restaurants awaits "double-digit increases" this year, according to Chief Financial Officer Lawrence e. Hyatt.
Extreme futures for June rose 1525 cents, or 1 percent, to $ 1.027 a pound at 9: 50 a.m. on the Chicago Mercantile Exchange. Earlier, the most active contract reached $ 1029, the highest since at least April 1986.
Strong overseas demand has driven Acropolis analysts said. US exporters shipped 368.9 million pounds of pork for January, up 17 percent from a year earlier, according to most recent data from USDA. Japan, the biggest buyer of u.s. pork in 2010, you will need to import more from the meat after a deadly earthquake and the tsunami this month, according to the US meat export Federation.
"I'm looking for export activity is probably quite intensive over the next two months," said Lawrence Kane, an adviser to the Stewart-Peterson group in Yates city, Illinois. "There's some real opportunities there are, unfortunately, because of concerns about quality of foods potentially facing the Japanese people."
Higher feed costs
Higher prices, driven by exports, is not enough to convince the producers to expand because the cost of entry is too high, said John Nalivka, the Chairman of the livestock and meat-industry consultant Marketing Inc. Sterling in Vale, Oregon. Hogs are placed in feed pens will now consume roughly $ 165 grain before they are slaughtered, up from about $ 123 a year ago, he said.
"Making things kind of blows," said Nalivka. "It will take just a little more time before we start encouraging anything looks kind of expansion."