High feeding margins in China are motivating Chinese pork producers to feed market hogs to heavier weights. This is impacting the market in many ways, says Arlan Suderman, chief commodities economist at INTL FCStone.
Taiwan has suspended the export of pigs and pork from Kinmen County, an outlying county close to China, for at least one week after two more dead pigs drifted ashore Kinmen and tested positive for African swine fever.
Recent trade negotiations and African swine fever in China have resulted in some of the most difficult times to make marketing decisions as markets began reacting to significant reductions in the global pork supply.
The U.S. is well positioned to help fill any additional need that China has for pork, said Joe Schuele, U.S. Meat Export Federation, “but we’d be in a lot better position if we weren’t facing a tariff that’s five times higher than everybody else.”
Money Matters columnist Kent Bang of Compeer Financial says timing in the marketplace is nearly impossible now, not knowing how long ASF will continue to reduce Asia's swine herd or how much pork is in their freezers.
The potential for social unrest in China due to the pork shortage is a key reason why the country's leaders are moving toward a trade deal, says Arlan Suderman, chief commodities economist at INTL FCStone.