In this file:
· China's pork prices to continue rising
… The average wholesale price of pork climbed 29.8 percent year on year…
· Tyson Foods hits record high, prepares for China profit boost
… reaffirmed expectations it will profit from the spread of a fatal hog disease in China, sending shares to a record high…
China's pork prices to continue rising
via China.org.cn - August 7, 2019
Pork prices in China will continue to rise due to tight supply and the African swine fever, said analysts.
The average wholesale price of pork climbed 29.8 percent year on year to 21.59 yuan (about 3.1 U.S. dollars) per kg in June, mainly because of the influence of the African swine fever, said the Ministry of Agriculture and Rural Affairs (MARA).
Affected by the African swine fever, breeding enterprises invested more in monitoring and prevention of swine fever, leading to rises in pork prices, said Zhu Danpeng, an analyst in the food industry.
The country reported its first case of African swine fever in August 2018 in the northeastern province of Liaoning. Later outbreaks were reported in several other provincial regions.
From July 22 to 26, unprocessed lean pork was sold at 25.34 yuan per kilo on average in 16 provinces and regions, up 43.1 percent...
Tyson Foods hits record high, prepares for China profit boost
By By Tom Polansek, Reuters
via The Western Producer (Canada) - August 6, 2019
(Reuters) – Tyson Foods Inc reported better-than-expected quarterly earnings on Monday and reaffirmed expectations it will profit from the spread of a fatal hog disease in China, sending shares to a record high.
Tyson has not yet reaped major financial gains from the deaths of millions of pigs in China‘s outbreak of African swine fever, Chief Executive Noel White said. China is still working its way through frozen meat supplies, but could begin to increase imports of U.S. pork to fill a shortfall as soon as October, he said.
Shares hit a record high of $87.27.
African swine fever is fatal to pigs but harmless to humans and has not been found in the United States.
China could also ramp up total imports of beef and poultry meat as Chinese consumers look for other sources of protein. That could help Tyson, which produces beef and chicken as well as pork.
“I think that all of the proteins will benefit,” White told analysts on a conference call.
Tyson has already held discussions with meat buyers in China, the world’s largest hog producer and pork consumer, White said.
But China‘s purchases so far have fallen short of industry expectations so far after Beijing last year imposed retaliatory duties on imports of American farm products including pork as part of the escalating U.S.-China trade war.
“As China depletes its frozen inventory and starts tapping into the global pork supply in a more meaningful way, we expect Tyson to start realizing meaningful upside, likely in early FY20,” Bernstein analyst Alexia Howard said.
Higher corn prices could limit profits for Tyson, which buys the grain to feed chickens. The size of the American crop is uncertain after farmers suffered unprecedented plantings delays this spring due to widespread flooding.
Tyson expects a year-over-year increase of $150 million to $200 million in the cost of grain, Chief Financial Officer Stewart Glendinning said.
The company recorded a $40 million gain in its chicken unit in the third quarter ended June 29 as corn futures rose, benefiting the company’s position in the grain market. However, much of that profit is likely to be reversed in the fourth quarter as corn prices have pulled back, Glendinning said...