Brazil and World
Disease outbreak causes hike in Chinese hog future contracts
Recently released reports highlight serious disease outbreaks within the world's largest pig herd and this has made China's most active hog future contracts go up more than 4% earlier this week.
The concern with the animal supplies and the possibility of price increase changes the behavior of investors, which generated an increase of 4.08% in future contracts. The ton of pork is now traded at 26,900 yuan or USD 4,166.15.
Last month, Reuters reported that new strains of African swine fever had hit production on breeding farms in China. In addition, the virus has been registered and resulted in the killing of hundreds of animals in Hong Kong. Analysts and industry participants also told Reuters earlier this month that outbreaks of other diseases are hampering production this year.
According to analysts, the scenario is a lot like 2019, when the market began to understand the severity of swine fever, fueling a recovery in the stock market.
Swine fever wiped out about half of China's herd in 2019, a year after it had arrived in the country, pushing pork prices to record levels and fueling the highest consumer inflation in years.
Even with all the efforts put in herd rebuilding, an outbreak of diseases this winter hampers attempts to cut pork prices.
Analysts approached by Reuters do not believe in a rapid recovery of the herd. In addition, in an article published on the Australian portal Beef Central, Andrew Whitelaw, from Thomas Elder Markets, says that the Chinese government's forecast of herd replacement is not in line with reality and that China continues to import large volumes of meat, which would not make sense then if the herd was approaching its normal level.
Brazil and World
KITGarra at Gulfood 2021
One of the main international fairs in the food and beverage sector, Gulfood 2021 begins this Sunday. And, among the approximately 2,500 companies from 85 countries that will be exhibiting their products and services at the 26th edition of the fair that takes place in Dubai, is KITGarra International.