Pork sector of China shows signs of recovery, prompting fewer imports

According to the Rosgan Report of the Rosario Stock Exchange (BCR), the recovery of the local pork sector will make China less dependent on pork imports. Consequently, pork inflow should decrease to less than half of what was imported in 2021, from 4.33 to 2.15 million tonnes this year.

Brazil alone could export an additional volume of approximately 400 thousand tonnes, raising its export balance to 2.725 million tonnes. Conversely, the United States will have its export capacity limited to 1.5 million tonnes due to a severe drought in the country.

See below the track record of Brazilian pork exports to China between January 2021 and May 2022. The data below is from DataLiner.

Pork Exports to China | January 2021 – May 2022 | WTMT

Source: DataLiner (click here to request a demo)

As for Argentina, China represents 75% of its sales abroad. In turn, the current period of intense buying pressure coincides with a time of the year when, seasonally, Argentina’s cattle start getting scarce.

As a result, the predicted demand pressure converges with a seasonal supply shortfall, which should promote an improvement in the prices of these categories owing to the weather.

Source: Canal Rural

To read the full original article, please go to: https://www.canalrural.com.br/radar/suinos-china-recupera-setor-e-tem-menos-demanda-de-importacoes/

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