DESPITE LOWER COMMODITY PRICES, FOOD INFLATION COULD INCREASE

Trade disputes and increasing production are weighing on livestock commodity prices, especially hogs.  Director Pat Westhoff of the Food and Agricultural Policy Research Institute at the University of Missouri…

Hogs are expected to bottom next year at $41.33 per hundredweight before recovering in 2020.  Westhoff predicts cattle prices to decline for another two years before herd sizes begin shrinking.  Despite the lower commodity prices, food inflation is expected to increase in 2019.  Westhoff explains one potential reason.

FAPRI’s baseline update was released two weeks ago, before multiple cases of African Swine Fever were discovered in China.