Lean pigs, one of the most profitable commodities this year, are selling at the highest US prices since 2014 as changes in Philippine pork prices improve demand outlook.
Philippines the two-month ceiling on pork prices has ended, and the US industry is already expecting a reduction in tariff rates on meat imports. The measures are being taken as the Southeast Asian country is grappling with an outbreak of the deadly African swine fever virus, which has also reappeared in China, the world’s largest pork producer.
The Philippines is one of the fastest growing markets for American pork, and China has become the world’s largest importer since the 2018 swine disease outbreak. Meat demand is on the rise as factories reopen in the US, in contrast to last year’s downturn. demand when restaurants closed in the early days of the pandemic.
“Demand is recovering not only in Asia, but here in the US as well, and right now the supply is not catching up,” said Altin Kahlo, an analyst at Steiner Consulting Group in Manchester, New Hampshire. telephone interview.
Lean pig futures rose 2.3% to 108 cents a pound, the highest since July 2014. A gain of more than 50% since the beginning of the year has put the pigs ahead of other big companies, including gasoline and copper futures.
The National Pork Producers Council said on Wednesday that the Philippines will sharply cut import tariffs on pork, allowing greater access to foreign supplies. statement.
“As global pork supplies remain tight this year, this cut in import duties will help improve product availability in the Philippines and give additional impetus to US exports,” US Meat Export Federation spokesman Joe Shuele said in an email.