Rabobank’s quarterly hog report
Rabobank issued its quarterly pork report summarizing the impact the Porcine Epidemic Diarrhea virus has had on the U.S. pork market especially. Vice President; Animal Protein, Food and Agribusiness Research, Will Sawyer says slaughter numbers are already down and will probably go down more in the next few months. He thinks we may see the low point in September. On top of that comes the threat of at least some reinfection this winter although he does not expect it to be as severe as we saw last winter.
On the global side, China has not been hit by the virus and pork supplies have been good to the point prices were declining. However he thinks the Chinese price has bottomed-out and prices are starting to increase but not enough to spur an increase in production.
The European Union has also been able to avoid PED and that positions them to pick up some export business in Asian countries. Traditionally the EU has been priced out of the market because of the strong Euro but the higher global prices have made them competitive.
AUDIO: Sawyer talks about the market 7:14 mp3
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