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. Despite hog slaughter running below year-ago levels, 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. Exports account for nearly half of U.S. ham and picnic production. Weak global prices coupled with intense international competition have weighed heavily on values. The pork trim market has shown mixed performance. 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.
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