Chinese volatility determines global pork market

Published Jul 28, 2021

Tridge summary

Chinese hog and pork prices have experienced significant volatility, leading to a surplus and a sharp price drop in the first half of 2021 due to high slaughter rates, as reported by Rabobank. This surge in production has had adverse effects on both farming and trading, resulting in anticipated price rebound but continued pressure from high frozen pork inventory in the near future. Global pork markets are expected to see changes, with China's experiencing a slowdown in production and demand, while Europe and the United States face challenges such as high feed costs and export fluctuations. Brazil's pork industry remains robust, benefiting from increased consumption due to higher beef prices. The situation highlights the impact of production imbalances and market dynamics in the global pork industry.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Great volatility in Chinese hog and pork prices have been rippling through the global market in recent months, Rabobank wrote in a press release announcing the latest quarterly update. These are written by a team of the bank’s strategic market experts. China’s slaughter rates were unexpectedly high in the 2nd quarter of 2021, wrote Rabobank, “pushing pork production up 35.9% year-on-year in the 1st half of the year, according to official data.” The bank continued to write: “The sudden supply increase resulted in a sharp price decline and negative results in both farming and trading in the 1st half of 2021, pointing to low pork imports into China in the 3rd quarter.” Downward pressure due to frozen pork inventory While Rabobank expects hog and pork prices to rebound in the 3rd quarter, the estimated high frozen pork inventory will impose a lot of downward pressure on prices. The bank expects that a slowdown of imports in the coming months will reduce full year imports from 2020’s ...

Source: Pigprogress