(April 8, 2020 at 10:27 am)popeyespappy Wrote:(April 8, 2020 at 10:20 am)BrianSoddingBoru4 Wrote: Bacon would be cheap, but China, because of swine fever, is buying massive amounts of pork. Since they’re buying so much, it’s both driving the price of bellies down, but creating a strained market in the rest of the world, which is driving the price of the finished product upwards.
Boru
I'm not disputing what your are saying, but why would China buying a massive amount of pork driving the price of bellies down? Assuming a constant supply, and I have no reason to think it isn't, higher demand should result in higher prices.
Volume pricing. If China is willing to pay less, but buy your entire supply, it pretty quickly establishes a new market price.
Boru