Pig prices continue to rise in the United States

Where in Europe pig prices are slowly creeping out of the price trough, pig prices in the US are showing more spirit. The Iowa/Minnesota quote has already risen 75% since November to $2,15 per kilo. This puts the listing at the highest level since mid-August. The futures market in Chicago is also picking up fast and is now trading at $2,40 per kilo. What is striking is that the seasonal increase started quite early this year, and the start is also energetic.

Fewer pigs, less meat 
The revival in the market is due to rapidly rising meat prices. They are responding to the slaughter figures that have been lagging considerably for weeks. This is mainly due to the Omikron variant that thwarts the slaughter plans. Another possible factor is that the number of pigs has decreased considerably. As of December 1, the United States had 74,2 million pigs, according to new figures from the United States Department of Agriculture (USDA). This is a decrease of 4% compared to the same period last year and 1% compared to the September census.

In contrast to Europe, meat stocks in the US are low. In December, the USDA traded 399 million pounds. This amounts to approximately 180.000 tons. On paper, that is about 40.000 tons less than the pork sold in December in Germany was stored. In the US, stocks are therefore well below the long-term average, in contrast to Europe, where cold stores are reportedly overflowing. On the demand side, the US meat market is receiving support from the 'end' of the corona crisis. In addition, the US can refute good meat export figures, partly thanks to excellent sales opportunities in Mexico. The neighboring country has thus filled the gap, which has left behind the drop in demand in China.