Pork Processors Confront Soft Demand

U.S. pork processors are facing growing headwinds.

Prices for key products used in further processing continue to weaken, according to the National Pork Board’s latest Profit Maximizer report prepared by Steiner Consulting Group. Bone-in ham prices remain near annual lows in the low $70 range, highlighting soft demand. Picnic primal values have also fallen sharply, down 28% from a year ago. Weak global prices coupled with intense international competition have weighed heavily on values. Fat trim prices have benefited from a seasonal decline in slaughter, while 72% lean trim values remain under pressure as additional boneless muscle cuts enter trim channels. Fresh pork prices have been relatively steady but continue to trail year-ago levels. Ribs, which enjoyed strong summer demand, are beginning to face seasonal pressure and are expected to weaken further this fall.