Purchasing pork continued to decline at the early July
Average purchasing pork price in live weight started July with loss at 1,8% against previous week and made 43,6 UAH per kg, minimum price tended to 42 UAH per kg, informs Ukraine Association of hog producers.
After pre-holiday increase of prices on hogs at slaughtering, price quotation couldn't maintain the attained level. So, during previous tenders, commodity batches went 0.5-1.5 UAH/kg down against a week earlier.
"At the same time, the interregional gap has worsened. So, if most of the harvesters in the West and in the Center bought "live" pigs at 43-44,5 UAH/kg, then in the eastern regions the lower price threshold crossed the mark of 42 UAH/kg. As the reason for this discrepancy, operators voice the relative balance of supply and demand in most of the regions, while in the East there is an active supply of commodity pigs against the backdrop of sluggish sales, "experts explain.
Given the heterogeneity of market signals, the premonition of market players regarding further price dynamics is quite contradictory, according to the Association. Thus, pork producers indicate an increase in the impact of temperatures on animal growth, which limits the supply of conditioned animals. At the same time, the vast majority of them did not have problems with the sale of commodity lots, so transitional remains of animals at slaughtering are practically absent.
«At the same time, meat processors expect further downward price movements under the pressure of sluggish trade and, in their opinion, significant remnants of raw meat that operators have.
"Given the polarity of the positions, the probability of both consolidating the price range throughout the country within a narrow "corridor" and further multidirectional price movements is quite high," the analysts summed up.