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Pork Prices Hit by Falling Demand

24 June 2013

BRAZIL - Falling demand over recent months has hit pork prices, according to analysts at Cepea, the research centre linked to Sao Paulo University.

Hog and pork quotes have continued to decrease in almost all regions surveyed by Cepea in mid-June. However, in the past month, there has been an upward trend in many areas.

In regard of main inputs used in the swine production, soybean meal quotes have increased sharply, while corn prices are down. In this scenario, in the month of June, the purchase power of producers has decreased compared to soybean meal. In Chapecó (Santa Catarina State), where hog prices are also dropping, there are decreases compared to corn; in Campinas (São Paulo State), the ratio between purchased corn with hog sales has increased in relation to late May.

Recent hog price drops have been mainly attributed to the weak demand for pork. Moreover, agents from the Southeastern region report that the competition with the pork from the South Brazil has increased.

ThePigSite News Desk

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