The U.S. hog inventory is up 3 percent from a year ago, according to a quarterly report by USDA. Beef and poultry production are also expanding, leading USDA to forecast a nearly 4-percent increase in the meat supply this year. The increase is so large that per capita meat consumption is expected to increase by 5.6 pounds, to 222.4 pounds per person.
In its Hogs and Pigs report, the USDA said there were 72.9 million head on farm as of March 1, an increase of 2.2 million head from a year ago. Most of the animals are headed for slaughter, but farmers are keeping more hogs for breeding and they plan to have increasing numbers of sows give birth through the rest of this year, meaning more piglets to be fattened for market in coming months.
One analyst says that unless pork exports accelerate, the futures market for hogs will feature lower prices in coming weeks. The USDA estimates pork production will increase 5 percent this year, to 22.9 billion pounds.
The Hogs and Pigs report was issued a week after the monthly Cattle on Feed report found a 9-percent increase in the number of cattle in feedlots on March 1 compared to a year ago.