China’s market will remain elevated
In China, imports are expected to further increase, supported by strong domestic prices and further destocking of the herd in 2016, driven by stricter environmental regulations. The level of China’s imports and relative competitiveness of major exporters is a major dynamic in 2016.
US exports will determine price level
In the US, industry expansion is expected to 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, mCOOL repeal and relisting of plants for export to China.
Private storage is the key to EU recovery
EU pork market recovery during the first weeks of 2016 will reverse in the coming weeks, after the suspension of the European Commission’s Private Storage scheme on 21 January. Reopening of the scheme will be critical for further market support.
Brazil’s positive scenario will continue
In Brazil, the market is forecast to follow the steady path of Q4 2015 due to continuing good domestic and export demand. This will, however, not result in higher prices due to the challenging domestic economy and low international prices.
For more information please contact the report’s authors:
Albert Vernooij: Albert.Vernooij@Rabobank.com, EU & Russia +31 30 71 23834
William Sawyer: William.Sawyer@Rabobank.com, USA +1 +1 212 916 7991
Chenjun Pan: Chenjun.Pan@Rabobank.com, China +86 10 56951155
For other information, please contact Rabobank press office:
Madelon.Kaspers@Rabobank.com +31 610 887 244
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