World pork market shows little upside: Rabobank

Feb 01, 2016

Some improvements may come in Q2

By Diego Flammini
Assistant Editor, North American Content
Farms.com

The global pork market will remain weak through the first quarter of 2016, according to a new report from Rabobank.

Rabobank's Food & Agribusiness Research diviison does predict some improvement in Q2, it suggests that growth will be mostly seasonal.

"Sufficient supply and modest demand development mean the five-nation hog price index will bottom out in the coming months, at the lowest point since 2016," according to the Jan. 28 quarterly report.

The report explains that in the U.S., industry expansion should slow after near-record supply growth in 2015, while packers' margins will remain strong due to limited available capacity.

"Exports are expected to pick up, supported by low prices, COOL repeal and relisting of plants for export to China."

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