The U.S. pork market is being weighed down by weak demand even as beef prices remain elevated due to historically small cattle supplies, according to a commodity analyst.
Arlan Suderman of StoneX Financial said pork fundamentals are being driven more by consumption, or lack thereof.
“This market has been struggling more with disappointing product demand.” Suderman said.
He said pork has not seen the same strength as beef, where tight cattle numbers have pushed prices higher.
Beef prices remain elevated because of a historically small cattle herd, creating strong support in that sector. Pork, however, is not benefiting from that same demand environment.
Suderman said at a time when the pork industry anticipated increased demand, expectations for pork demand this year have not been met.
“Just simply hasn’t been as strong as what was anticipated this year.” he said.
He added that while hog production continues to improve in efficiency, weak demand is limiting price strength.