Pork markets at their lows as demand weakens

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October was not the best month for the pork market at the CME in Chicago. Physical pig prices in the United States are also under pressure.

The CME-December contract concluded on Friday 31 October at $ 0.76 per pound (=0.45 kilos). At the beginning of the month, the futures market recorded $0.92. This represents a decrease of 17%. Physical market prices are also under pressure. For example, the Iowa/Minnesota listing fell by 23 cents in October to $1.38 per kilo.

As a result, the price pressure, which has been taking place since mid-June, continues unabated. Since then, prices have been significantly downgraded. By mid-2021, the listing was at an all time high of almost $ 3. The decline that is now visible is in line with the seasonal pattern on the American pig market. Overall, prices rise in the first two quarters of a year, before falling in the third and fourth quarters.

Last summer pork prices in the retail sector have risen to record levels. This slows down domestic consumption, slowly increasing meat stocks. In addition, the US, like Europe, is struggling with a significantly reduced demand from China. That too puts pressure on pig prices. Nevertheless, this year’s export figures can hold up reasonably, as neighboring Mexico imports significant volumes.

About the author

Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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