US Pork Exports & the Port Strike

Since mid summer nearby lean hog futures prices have rallied from the low end to the upper end of the projected price range based on assumed US market fall and winter hog supplies. One factor supporting hog prices deliverable on the CME live hog contract has been strong export demand. US pork export sales for 2024 delivery have risen to the largest ever except for 2020 and 2021 when China was forced to buy substantial US pork due to disease in the PRC domestic herd.

Mexico is the biggest buyer of US pork, but Asian nations also have   been steady customers. About half of US pork exports are shipped via water so the current port strike would have a negative impact on live hog values if the strike would extend more than a few weeks.