Live market: a three percent increase

Submitted by bashun on Mon, 03/12/2018 - 09:41

The beginning of spring pleased the producers of pork with the continuation of the positive dynamics of purchase prices.

It is reported: http://pigua.info 

So, if the previous three weeks the price for pork was  at the level of 44.5-46 UAH/kg, then in the course of trading last Friday the planned markings went up by 0, 5-2 UAH/kg. Therefore, the average market price added 3% compared to the 9th week and exceeded 47 UAH / kg.

Expectations of suppliers of commercial pigs were justified, therefore representatives of the meat-processing industry bought live animals at 46-47.5 UAH / kg this week. They noted that they heard suggestions of a higher price (48 UAH/kg). However, de facto at such a price, the purchase was made sporadically. According to the opinions of the meat processors, this level of prices for this period and the level of activity of realization is too high. As a result, some of the operators either reduced the volume of harvesting, but stopped it altogether, switching to the purchase of pork in items from other suppliers or to own frozen stocks.

In addition to the limited supply of slaughter pigs, the incentive for higher prices this week was the expectation of better trade during the holiday weekend. However, in the activation of sales on holidays, only a small number of operators believe, and their estimates for the growth in sales volumes are fairly "modest" - plus 5-15%. An additional factor supporting the upward price movement last week was weather conditions, which complicated the logistics of procurement for meat processing: some of them were forced to buy a commodity stock of producers that are located closer but at a higher price.

As to whether this leap will grow into a steady upward movement that will last until Easter, the meat processors do not have unanimous forecasts. So, some of them believe that the price from next week may weaken in response to a decrease in sales volumes. The rest shares the hypothesis of stabilization and insignificant positive volatility during March. The voiced expectations regarding the prices on the eve of Easter are also significantly different and fluctuate within 48-52 UAH/kg.
 

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