Long-Awaited Chinese Buying Behind Surge In Canadian Pork Exports
Canadian pork exports are way up already this year.
Market analyst Kevin Grier says exports to China alone were up 160 per cent in January.
“Big Chinese buying has continued through February and into March. We’ve been waiting for a year or two years for the Chinese to start buying based on their reduced sow herd and it finally appears to be happening.”
He’s forecasting a slight increase in U-S hog slaughter this year, although he expects volumes will decline slightly into July, then increase.
And while he believes the bull market for cattle of the past couple of years is over, Grier still thinks the beef market will be supportive of the pork market for 2016.
“The beef market has been very, very positive for the pork market and it’s going to continue to be supportive to the pork market but not to the extreme extent that it was in 2014 and 2015.”
Grier’s comments came in an Ontario Pork webinar this week on market expectations.
Analyst Kevin Grier points out that export increase includes a 160 per cent increase in exports to China in January alone.
Grier doesn’t think the end of the bull market for cattle will have a serious negative impact on the pork market.
Grier is predicting U-S hog slaughter numbers for 2016 will be very close to last year, with the chance of a slight increase in total volume.