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Chinese demand forecast down for soybeans and up for pork
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jd 9760
Posted 4/14/2019 07:53 (#7438364 - in reply to #7436882)
Subject: RE: Chinese demand forecast down for soybeans and up for pork


NW Ohio

Increase slaughter weights seems like the best option. All this China issue is going to do is temporarily increase pork demand until they get their stuff together which may take a few years. The last thing we want to do is ramp up production and build more slaughter houses and go wild because the back side of this is a flooded pork market in a few years with plants shutting down and barns standing empty. Increased demand should result in increased pork price. It's not up to the US producer to make sure china is fed. Take the increased price and the income boost but don't start going crazy like it here to stay because it won't be. Use that money to update your current facilities and catch up from those years of low prices. Ride the wave, make some money, and be happy about it. You don't want to be holding the note on a big new facility when production rebonds and prices fall. Stick to your growth plan, don't get in too deep and enjoy the show!

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