From live animals to cuts, the prices of pig products rose consecutively throughout June, ending the month in a positive light. According to Cepea employees, the appreciations were mainly due to the increase in domestic and external liquidity, a factor that heated up the production chain and increased demand from large industries for animals in the independent market. In the domestic context, the partial reopening of commerce in important consumer regions favored demand for pork.
In the foreign market, Cepea employees point out that Chinese demand was quite strong, which may be linked to the continuous cases of African Swine Fever (ASF) in the Asian region and also to recent cases of foot-and-mouth disease. In May, China and Hong Kong were the destination for 73.1% of shipments of Brazilian pork products. Despite the recovery compared to previous months, prices are still below those recorded in the same period of 2019, in nominal terms. The pig carcass followed the same trend as the live animal, and for cuts, the valuations were even more intense, causing the June averages to exceed those of the same month in 2019.
In addition to the heated demand, supply was more limited. Sector agents report that some slaughterhouses have been operating on smaller scales, due to sanitary measures to prevent coronavirus.
Source: agrolink
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