Original content
A lack of rain in Spain, the largest olive oil producer has pushed prices up. The lack of adequate rainfall has caused olive oil trees to suffer massively this season. Harvest could be thus lower causing further tightness to the market.
Wholesale prices of pork (carcass, dressed) in Beijing, China, rose during the last week of April by 11% WoW and 9.2% MoM to CNY 19.4/kg, the highest in 13 weeks.
Prices had been falling in the prior weeks in accordance with a dip in seasonal demand, but the recent rise seem to have broken the trend. Chinese pork imports were reported rising by double-digit rates in March, indicating strong demand. Meanwhile, there were reports of African swine fever (ASF) infections earlier in the year which could hamper production moving forward. This is bullish for prices.
Currently, the extent of the potential production disruptions coming off the ASF is uncertain. But during the 2018-2019 outbreak, it caused a meteoric rise in prices and kept them elevated until 2021 as China's need for imports increased. If a similar development occurs this year, prices could strengthen sharply in the upcoming months.
Trade4go
Apr 24th, 2023
