Currently, pork supply is not too plentiful, especially after the occurrence of two big rainstorms in the Central region and Central Highlands in late September and early November. However, for some reason, live hog price has kept falling lower. This can be considered an alarming signal for a future strong price increase. As Vietnam’s livestock production is characterized by collective spirit (high prices lead to strong investment, low prices leads to the opposite behavior), after the cycle of decreasing prices, the recovery will take place at a speedy rate because supply is well short of demand. Moreover, in the year-end, pressure from growing demand will further make prices of pork products, which are considered to be indispensable in family meals, increase high.
Figure: Prices of live hog and frozen bellies for February 2010 futures on CBOT (Uscent/lb)
Source: www.reuters.com
Main movements and trends:
- Pork supply to Hoc Mon market (HCMC) drops 5 tons/day
- Live hog price in HCMC decreases further VND 1,500/kg
- Ham in Hanoi market is priced at VND 52,000/kg this week
- Silverside price in HCMC rises by 2%
- Prices of live industrial chicken and live Tam Hoang chicken in the South keep increasing VND 1,000/kg
- Foodstuff imports for which enterprises already contracted with providers in service of the 2010 New Year festival fall some 30% compared with the same period of last year
According to "Vietnam food market weekly Report" - AGROINFO, www.agro.gov.vn
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