Price pressure is increasing
US pig price dips below dollar per kilo
The pig futures market in the United States (US) has declined sharply this week. This after it became known that China will tax American pork with 25%. The physical pig price is also falling further and further.
when it news was announced on Monday, April 2, the April contract on the Chicago futures market (CME) fell more than 6% to $0,54 a pound (that's 0,45 kilograms). Later in the week, the price even dropped to slightly above $0,50 per pound. This is the lowest level since 2015. Analysts say investors are shocked by the imposed rates, and are therefore adopting a wait-and-see stance.
Dollars per kilo
The American pig price (the Iowa/Minnesota quotation) is also not benefiting from the news. The quote has fallen by €30 since last Friday (March 0,07) to a paltry $1 per kilo (Wednesday, April 4). One day later, the price fell even more deeply. The last time such awards occurred was in November 2016.
At first glance this is not long ago, yet this price level is extremely low. The second to last time was in August 1. Since the turn of the century it has only happened once in the US that the price is below $2009 per kilo.
lots of pigs
In addition to the Sino-US trade war, the growing pig herd in the US a reason for the price pressure. Since February, when the price was still above $1,60 per kilo, the American pig price has been on a slide. Price pressure in the US is also being experienced by slaughterhouses in the Netherlands and Germany.
Wouter Job
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