An Addiction to Pork Has China Searching to Hedge Prices
Dalian Commodity Exchange to start futures contract next year
Farmers can’t keep up and rising costs can boost inflation
China is looking to hedge the cost of its pork addiction.
In a country that consumes half the world’s pork, price swings have become so large that they hurt the ability of domestic producers to keep up with demand, even with a herd of 450 million pigs. Imports are the highest ever and exceed all other buyers.