The global food chain is being shaken by a pig virus, African swine fever, that started to kill off pigs in China last summer and has now spread to Mongolia, Vietnam and Cambodia. This has sent a shock wave through the global food chain with the strengthening of the global meat market and the rising of prices.
The fact that the African swine fever hit China first and is continuing to kill off pigs there is a significant factor to the meat industry, as China farms more than half of the world’s pig population. This is a great concern to the global economy and to China’s economy as a whole as pork makes up the largest portion of China’s consumer product basket and, as a result, rising pork prices may also, mean rising inflation in China.
At the moment the global meat supply is decreasing while pork prices are surging. Wholesale pork prices in China are up by 21 percent compared to last year, while prices in the U.S. and the EU are also rising. According to Bloomberg, analysts expect this to have a knock-on effect to other kinds of meats like beef, poultry, eggs and any other kind of protein that may be used to replace pork.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.