Genesus Global Market Report: Mexico January 2024
Liveweight hog prices in the Mexican market
21 February 2024
2 minute read
By: The national average price of liveweight pigs has been lowered in the first weeks of 2024 by 4.21%, reaching 33.34 pesos/kg (USD 88 cent. /lb) compared to 34.85 pesos/kg (USD 86 cent. /lb) by the end of December 2023. However, over the last few days it has reporting a new rebound with an average of 34.60 pesos/kg (USD 91 cent. /lb).
2023 data prices - the average liveweight market hogs’ price in Mexico in 2023 was 40.93 pesos /kg (USD $1.08 /lb).
Pork import
Despite this activity in the variation in liveweight market hogs’ prices, the key point here is the average pork price differential between the United States and Mexico, which, in recent weeks, has been 235%. You don't need to be a nuclear scientist to deduce that, inevitably, a trade imbalance of this magnitude makes the entry of more American pork into Mexico increasingly attractive.
A few days ago, at a meeting of pork producers in Sonora it was mentioned that currently 48% of the pork consumed in Mexico comes from abroad. This has raised alarm bells about an imminent danger of depending primarily on imports to satisfy national demand.
Grain
Global inventories of corn and soybeans have exceeded expectations for harvest volumes, generating a positive effect by having more decent production costs on pork producers.
In South America there have been favorable rains in the areas of grain crops in much of the producing areas. It is important to highlight that in the case of Argentina, in addition to the good weather, that country's exporters continue to accelerate their sales, anticipating the increase in export duties, which would go from 13 to 15%, which causes the price of corn to decrease by 0.52% weekly. In the case of soybean paste, the price is reduced by 1.3% weekly due to the forecast of good rains for the next few days in the north and northeast of Brazil, which would bring some relief to the regions that had been suffering from a severe drought since October.
Sources: Agricultural Market Consulting Group (GCMA), Opormex, Porcicultura.com
