US pig price sees support disappearing

Since August, the bacon market in America has been experiencing a significant revival with prices having climbed rapidly. Until last week, because in one day the bacon price plunged by no less than 14 percent. Bad news for pig prices, because they also turn red as a result.

The bacon market generally picks up especially in the summer period and demand weakens again in the winter months. In recent months, however, the bacon market has moved against seasonal trends as US supermarkets continued to highlight bacon, even after the summer months. The choice of McDonald's to serve breakfast 24 hours a day for some time was also clear support for the market.

The reason that the bacon price fell in week 8, according to analysts, is mainly due to the rapidly rising bacon price, which has caused retailers to drop out. In addition, the shortage of bacon should not be exaggerated. Figures from the USDA, the United States Department of Agriculture, showed in early February that pork belly stocks are at their lowest level in 50 years. Analysts later responded that this inventory measurement should not be taken too seriously and that there is no impending bacon shortage. The expected pig supply in the coming months is large enough to cover the demand, or so the thinking goes. A 

The US pork price, the Iowa/Minnesota listing, stagnated last week following a dip in the bacon market and lost 5 cents to $1,56 per kilo on Thursday. Since November, pork prices in America have mainly been on the rise, but it looks like this increase will no longer be supported by the bacon market for the time being. 

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