Analysis Pig market
US pig price on the rise
Pig prices in the United States are currently having the wind in their sails. In recent weeks, quotes have made significant gains in price, which is in keeping with this time of year.
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From mid-April to the end of May, the trend in the American pig market was clearly upwards. The Iowa/Minnesota quote rose by about 15% to $2,50 per kilo during that period. An increase at this time of year is not uncommon, but historically the price is high. The futures market in Chicago has also picked up quite hard in recent weeks.
US hog prices are benefiting from the approaching summer months, with meat consumption typically peaking. In addition, the pig population has decreased. At the last count in March, the United States Department of Agriculture (USDA) reported a 2% decline.
Price rise will continue for a while
Meat stocks had increased somewhat in April, but historically they can still be regarded as low. These factors support the pig price at the moment. It is expected that the price recovery will continue for a while, the market usually peaks in June or July.
The support for the pig price is not so much due to good export opportunities. In the first quarter, export volumes fell by approximately 20% to 522.000 tons. The red figures are mainly due to a drop in demand in China, but can partly be compensated by good sales opportunities in neighboring Mexico.