The article reports a significant cancellation of US pork orders by China, totaling thousands of tons. This is a direct consequence of the trade war initiated by the Trump administration. The cancellations represent the highest weekly volume since the start of the COVID-19 pandemic in 2020.
Data from the US Department of Agriculture (USDA) reveals a 3% decrease in overall pork exports during the first two months of the year. Current sales figures show a concerning trend with new sales significantly lower than the four-week average (around 18,000 tons compared to 30,000 tons).
The data suggests that the reduced export volume is unlikely to recover in the near future. March export figures are awaited to provide further clarity.
The high import tariffs imposed by China (up to 172% on US pork) as a response to Trump's tariffs make importing US pork economically unviable, leading to order cancellations. While Trump hinted at discussions for lower tariffs, a Chinese Foreign Ministry spokesperson denied these claims.
Despite the weak export figures, the market appears to have incorporated the geopolitical risks. The more moderate stance of Trump towards China resulted in some recovery in futures markets. Pork prices remain relatively stable in the US, with futures contracts for summer delivery trading around $2.20 per kilogram of carcass weight (€1.95 per kg).