Stock exchange news. Pork market is currently influenced by a number of differently directed factors. On the one hand, price is under pressure due to such factors as:
- increase of young pig heads in the USA, which amounts to 1.5%, according to Quarterly Hogs and Pigs report, or almost 66 mln. heads in total as of December 01.
- increase of litter rate by 2%.
- increase of young pigs’ average live weight to 212 kg, which is a 10-year maximum;
- increase of expected pork production in 2012 by 2% in comparison to 2011, to 23.2 bln. pounds.
- increase of cold storage stocks by 20% in comparison to last month and by 8.5% in comparison to last year.
According to Commodity Trading Department of , supporting factors to pork market include:
- shortage of pork production in January by 3% in comparison to last year and by 3% in comparison to last month,
- shortage of young pigs slaughter by 4% in comparison to last month.
- high export (in January 2012 pork export rose by 36% in comparison to last year). The diagram shows the change of export in January 2012 in comparison to equal period last year.
Consequently, according to Commodity Trading Department, in total bearish factors currently prevail, but at the end of March new Quarterly Pig Crop Report will be issued in the USA, which may provide either support or resistance to the price. It is also worth mentioning that in the USA the season of bacon starts in April, and it is characterized by high demand for pork and consequently supports the price.
