We fear that in the short term, the collapse caused by the Russian closure will become more evident and, that with it, the price will inevitably fall again.
Swine markets commentaries
Shuanghui International’s goal is the Chinese government’s goal, to acquire long-term, low cost sources of China’s favorite meat by forming long term, low risk, globally coherent pork and agricultural resources chains and they are well on way to that goal.
It seems that the price has initiated its spring rise, but many factors intervene. Whilst the Russian borders are still closed the collapse of some cuts (especially fats) will be inevitable.
Time will tell if PEDV is the cause but weaned pig and feeder pig prices began to turn up in June, a couple of months ahead of their traditional seasonal bottoming with the turn toward seasonal highs which peak usually in February or March.
We are closing the financial year at the minimum level in the whole year, in a turbulent setting that will need three or four weeks to clarify itself.
When you earn a profit, you have created more tangible value than the cost of the scarce global resources used to create your final product.
Globalization is a fact, and regional or national peculiarities are progressively less important.