When global supplies of pork are large, as they are now, the name of the game for major production areas is growing net exports.
It has been years since we last saw such a risky price and situation.
The European market is saturated with pork since late summer. The WHO's report has been an ice-cold shower for the whole of the European pig sector.
The only prospect for growth in both the EU and the US is increasing net export sales. We are at an interesting cross-roads about which pork producing nation or group of nations will capture that opportunity.
We think that in October the price will still fall in Spain. A correction for the alignment with our neighbours is prevailing.
US pork industry is enjoying the lowest feed costs in quite some time. A significant number of new hogs to be raised in the U.S. is expected. Will the production arrive ahead of the new slaughter capacity?
The Spanish price can only fall, and it will inevitably drop week after week in September.