The EU pork price exhibited a bearish trend, driven by reduced exports and compressed domestic demand, followed by the coronavirus outbreak. Consequently, the Mar-May average price of EU pork fell by 6% compared to the previous average (Dec-Feb). Furthermore, the Mar-May average price of US pork decreased by 2% against the previous average (Dec-Feb), due to reduced domestic demand and higher Q1 production compared to the previous quarter.
Weak demand from the foodservice sector is expected to be one of the critical drivers for contractions in global consumption. Also, the economic impact of COVID-19 may result in a downturn in consumer incomes and is likely to drive consumer demand towards cheaper sources of meat protein, reducing pork consumption, thus, weighing on EU and US pork prices.
From economical to political, all the factors impacting the pork market have been analysed to provide a market outlook for the next three months. Mintec’s market outlooks (schedule) provide insights on factors shaping the market dynamics of various commodities, providing the opportunity for market participants to stay ahead of factors that will impact procurement decisions.