News Pig market
Omikron gives US pig price a boost
While pig prices in Europe are currently under pressure, the quotations in the United States are actually taking off. In both cases, this is due to the omikron variant of the coronavirus.
The pig price in the US (Iowa/Minnesota quote) has already risen by more than 15% since the turn of the year to $1,63 per kilo. This is the highest level since the end of September. Chicago's pork futures market is also at its highest level since October and has seen rapid gains, especially in the past two weeks.
The cause of the price rise is the contagious omikron variant. This is depressing the slaughter capacity in the US. As a result, there are concerns about the availability of pork, which is driving prices up. For a few weeks now, the pig slaughters have been lagging behind on previous years, while the animal numbers are actually higher.
Difference in meat stocks
In Europe, slaughter and deboning capacity is also under pressure. It is precisely here that it is pushing prices down as a result of an increasing supply of pigs ready for slaughter. What may play a role is that meat stocks in Europe are oppressively large, while that is less the case on the other side of the pond. In November, some 181.000 tons were the lowest number since 2018, according to figures from the United States Department of Agriculture (USDA). This data is not available in Europe.
Another factor is that the US can refute good export figures, unlike the European pig sector. Although sales volumes to China have fallen sharply, neighboring Mexico is buying considerably more American pork. Last November, Mexicans even imported a record volume of 87.000 tons, an increase of 51% compared to the same month in 2020.
Wouter Job
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