Bloomberg reports that a robust appetite for cuts like pig feet, ears and snouts in the world’s biggest pork-consuming nation is fueling a rally for hogs in Chicago. Investors last week increased their bets on a hog rally by the most since January, and the number of contracts outstanding has jumped to the highest in two years. The moves come as higher corn cost in China forced the nation’s farmers to cull herds in recent years, spurring the need for more exports. China could end up buying five percent of all U.S. pork production this year. China could be slow to increase its domestic production. Still, an expanding U.S. hog herd means that supplies could increase fast enough to meet demand, tempering price gains.
U.S. pork shipments to China double in volume
