On the stock market, investors put on pigs. The bets of the CME lean hog futures reached the highest price in these days for two years. The top consumer China is forced to cover themselves on the world market. Moreover, the feed costs in all meat-producing countries are increased.
The July contract for Lean hogs on the CME reached its highest rates and also the following due dates for delivery in the summer 2017 climb to new records.
Pork prices in the United States typically increase during these months because production due to high summer temperatures decreases, but the current rise in prices already very surprised market observers. There are a lot of branchenfremdes money in the pork market. Whether the bet from price increases pays off, must turn out to be yet, but it smells of it...
In China, prices for pork are already increased this year by 40%. The country has the largest herd of pigs of the world, and the produced meat now belongs for every household to primary care. To ensure the high demand, reserves from public refrigerated warehouses have been released already. In addition, imports from the United States, Canada, Germany and other countries have risen rapidly. For the United States, China was the biggest importer with a lot of 7,100 tonnes last week. Experts expect more sales in the country, where five times as many pigs are kept, such as in the United States. Now, China could develop into the largest customer for U.S. pork and crowd out Japan for the first time since 1989 by the pole position.
Rising prices for soybeans and corn, the main ingredients reducing feed and lower slaughter weights during the summer months the battle pork supply in the coming months.
