China buys U.S. pork
Farm Commodity Newsletter/Iowa Farmer Today
Thu 11/29/2018 9:11 AM
USDA reported “very large” weekly pork export sales, with Mexico the largest buyer, noted Dennis Smith of Archer Financial Services. “And guess what, China was in for 3,300 MT of U.S. pork last week. This alone should put a positive spin on futures today.” USDA’s report also showed China bought 9,400 MT of pork last week for 2019.
The cattle market “could struggle to absorb the hefty total meat supply short-term, but supply is about to peak; China may be a more active buyer of pork and beef next year (especially if there is progress for a deal on Saturday); and the demand tone remains strong,” The Hightower Report said. Analysts there…
China mulls stockpiling pork to support farmers hit by swine fever
By Hallie Gu and Dominique Patton, Reuters
via KFGO (ND) - November 29, 2018
BEIJING (Reuters) - China may soon buy pork for its state reserves to support farmers struggling to sell their pigs amid an African swine fever epidemic that has ravaged the nation's hog herd, according to people who attended a government meeting this week.
Pork prices in some parts of China, the world's top producer and consumer, have fallen more than 20 percent since August when the fatal African swine fever hit the country's hogs, in a blow to farmers.
It is not known how much Beijing would buy but the purchase would support prices in areas that have not been able to sell their hogs to places with demand, said Wang Zuli, chief expert on pig production at the Ministry of Agriculture and Rural Affairs.
The plan was discussed by the ministry at a meeting on Monday to discuss ways to ensure stable production of pork amid the African swine fever outbreak, said Wang, who attended.
The ministry did not immediately respond to a fax seeking confirmation of the stockpiling plan. It issued a brief statement on Tuesday saying it had held a meeting with major pig producers to discuss measures to stabilize pig output and secure pork supply.
Yao Guiling, analyst at China-America Commodity Data Analytics, said the ministry had proposed stockpiling, according to accounts of the meeting by people present.
China consumes about 55 million tonnes of pork a year. It is not known how much meat Beijing keeps in reserves.
It has in the past bought as much as 100,000 tonnes of pork for state stocks when prices are low but purchasing usually happens between March and May, when demand is weaker. Beijing has curbed its purchases in recent years as part of a policy to reduce interference in markets.
'OVERWEIGHT PIGS' ...