A lot of pork production and slowing Chinese pork imports are going to pressure American pork prices in the next several months, according to Rabobank in its latest quarterly Pork Report. A Rabobank analyst expects the global pork trade to stabilize while all of the main pork producing countries are still in expansion mode. That means prospects for 2017 are weaker and managing excess supply will be the key to success. Low production and higher seasonal demand will mean higher pork prices in China. This will provide support to import volumes, but growth will slow in the coming year. Rabobank says higher than expected supplies, combined with slowing exports and more competition from beef and poultry are pushing down profitability in the pork industry. The situation will probably worsen in the fourth quarter as slaughter capacity constraints will benefit processors until more capacity arrives in 2017. Rabobank also said production in the European Union will need to slow down to maintain price support.
From the National Association of Farm Broadcasting news service.