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October is not a good month for the futures market at CME in Chicago. Pork prices in the United States are also under pressure.
The CME December contract closed at $ 0.76 (= 0.45 kg) on Friday, October 31st. At the beginning of the month, the futures market value was still $ 0.92. This is a 17% decrease. Physics market prices are also under pressure. For example, the Iowa / Minnesota price fell 23 cents to $ 1.38 a kilo in October.
Price pressure continues
That means the price pressure that has prevailed since mid-June continues unabated. Since then prices have dropped significantly. In mid-2021, List A Rose all the time Almost $ 3. The decline that is now visible is in line with the seasonal pattern in the US pig market. Roughly speaking, prices rise in the first two quarters of a year and fall in the third and fourth quarters before that.
Pork prices in the retail sector have soared due to high pork prices last summer. This reduces domestic consumption, causing meat stocks to slowly rise again. In addition, the United States, like Europe, is struggling to reduce China’s demand. This also puts pressure on the price of pork. Nevertheless, because export figures will be reasonable this year Neighboring Mexico Imports significantly larger quantities.
Wouter Baan is the author of Boerenbusiness and focuses on the dairy, pork and meat markets. He tracks (business) advances in agribusiness and interviews CEOs and policymakers.
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