<center>![](https://cdn.steemitimages.com/DQmU74QZzBCdeLeH1UKVScfgjrVc5B2mvV5V8DRne8jJ2yP/image.png)</center>

Due to demand, US pork producers increased their slaughter capacity and ramped up production in the first quarter of this year.  However, in April, China announced higher duties on 100 products, including pork by slapping the other white mean with a 25% tariff on pork they are buying from the US.  Pork tariffs jumped from a range of 12%-20%, depending on the product, to 37% and as high as 45%.The  tariffs will make US pork higher priced in China allowing pork from the European Union and Canada to be cheaper.

China/Hong Kong in 2017 was the second-largest volume destination for U.S. pork at 495,637 tonnes, according to the U.S. Meat Export Federation.  The U.S. sold China 525 million pounds of pork in 2017 worth $1.1 billion. This was 9% of the total US pork export volume last year.

The National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA) released their quarterly hog inventory report on June 28. Th inventory of all hogs and pigs on June 1, 2018 was 73.5 million head. This was up 3 percent from June 1,2017, and up 1 percent from March 1, 2018. This is the highest June inventory of all hogs and pigs since estimates began in 1964.  Nevertheless, producers have seen hog prices fall roughly $30 since the beginning of July.

There seems to be a serious demand/supply in balance.  Lets go to the charts to see which side is out of of balance.

Monthly Chart (Curve Timeframe) - the monthly demand is at $80 and monthly supply is at $45.

![](https://cdn.steemitimages.com/DQmcxgar4342jQSgydP9USQBXHfAmW1gnrqJSNHkZyUm3bj/image.png)
 
Weekly Chart (Trend Timeframe) – the trend is sideways, so the charts suggest to play the extremes and get on board with the rest of the unfilled buy orders at $43 with a 1st target of $64.50.

![](https://cdn.steemitimages.com/DQmWXBCG8zDpc48YYr24ytPPxzWNZKidd861GnvtotftMjA/image.png). 



This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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