The Philippine hog industry is losing nearly USD 20 million a month from African swine fever (ASF) infections, agricultural officials said after announcing the virus has also been detected in some processed pork products. The highly contagious pig disease is quickly spreading in the Philippines, pushing up prices of other meat products such as chicken. The government reported the country’s first outbreak in September.
(average cost and freight to Durban)
China and South East Asia
Chinese lysine producers continue to limit production in an effort to stimulate prices, however, despite lower supply, prices have at least stabilized despite weak demand. In the European lysine prices remain weak, with little movement in any direction. However, it remains to be seen how the market will react to the implementation of the new re-registrations.
Chinese methionine prices have been supported by limited local production, increased demand from an expanding poultry sector, as well as limited imports due a weaker renminbi. With one major producer set to resume production soon, the current price stability could be undermined in the near future. The European market seems stable, albeit at slightly lower levels for October.
Production cuts implemented in September have only managed to stabilize prices, but slow demand and ample supplies have kept prices at very low levels. This situation is expected to continue for the foreseeable future. In Europe some supplier attempted to offer higher prices, but this strategy seems to have failed. Prices remain under pressure.
Valine prices have remained within a narrow band but have seen slight upward movement. Global demand seems to be improving, and this should support prices over the near term. The same scenario is playing out in Europe with higher price offers into the market.
The efforts to stabilize prices by limiting production in August and September seemed to have payed off. Prices have stabilized in mid-October and have even shown slight increases in the past two weeks. However, excess global production capacity will limit the upside. Prices should remain stable, albeit at a slightly higher level. European prices have not responded to higher price offers yet and remains stable.
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