Genesus Global Market Report: Mexico November 2022

Mexican Pork Market
calendar icon 17 November 2022
clock icon 3 minute read

The outlook for pork exports in the coming months seems encouraging, since the countries of the European Union continue with a declining pork production, China presents a domestic market with higher prices.

  • Last week, the national price of live pigs remained slightly down with 0.06%, remaining at $46.40 MXP per kilo, this price moves well above the prices registered in 2021 and 2020, with increases of 41.61% and 57.57%, respectively.
  • The carcass price remains without weekly movement with $61.65 MXP per kilo, which represents an annual growth of 41.82%.
  • The liveweight price average in Mexico is 47.28% above the price paid in the US, while carcass price has a difference of 50.34%.

Feed Market

In Mexico the prices of feed supplies continue with the volatility that has characterized them during the year, in week 42, corn and sorghum registered a slight weekly contraction of 0.03% and 0.1%, respectively, however the price of pasta soybeans move upwards with an increase of 2% compared to the previous week.

Regional Markets

The increase in pork prices for two of the most important domestic markets in Mexico, Jalisco and Sonora, has been equally substantial in the last two years, setting record prices in both states, as we can see in the following graph.

Export

Although with growth, Mexican meat exports begin to stagnate. From January to September, Mexican exports of pork, beef and chicken totaled 443,659 tons, a growth of 0.7% compared to 2021, this for a value 2.1% higher than that of the same period last year, closing the turnover at 2,513.4 million dollars.

The Agricultural Markets Consulting Group (GCMA) reported that, regarding chicken exports, pork was the meat with the lowest volume sold (2,777 t.) and the one that suffered the most considerable drop, closing the period at -22%; the value encrypted a contraction of 7% with 4.3 million dollars. and the price per ton almost 20% higher, with a total of 1,562 dollars.

MEXICAN PORK EXPORTS FELL 11% - Pork had a negative behavior falling by 11.3%, 177,400 t were placed abroad. for a value of 720.1 million dollars; In the case of the value per ton, it rose 4.9%, to have an indicator of 4,060 dollars.

Finally, beef was the only animal protein that reported a positive impact, with shipments 11.2% higher versus 2021, to have an export of 263,482 mt.; Even though the value per ton fell 4.4% (6,790 dollars), total revenues were 6.3% higher than the previous year, ending at 1,788.9 million dollars.

USD/MXP EXCHANGE RATE


Finally, the dollar against the Mexican peso. The Mexican currency shows a greater advance against the dollar, which fell to levels not seen since the end of February 2020. It has taken a breather after its constant rises for months (affecting other parts of the world more than Mexico). However, this falling dollar is bullish for US-traded commodities, such as agricultural trades continuing on the Chicago Stock Exchange (CME), and direct inputs into their trades. agricultural, commercial and agro-industrial operations.

Sources

Porcicultura.com

3TRES3

Grupo Consultor de Mercados Agrícolas (GCMA)

Fernando Ortiz

Ibero-America Business Development Manager
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