China Live Pig Prices Fluctuate Amid Ongoing Supply Imbalance
Domestic live pig prices in China saw slight fluctuations last week, according to data from SunSirs. The average price for three-way crossbred live pigs was 10.87 RMB/kg at the start of the week and 10.92 RMB/kg at the end, marking a weekly increase of 0.46%. This volatility is attributed to the ongoing supply and demand imbalance in the market.
As schools reopened in September, terminal meat market demand experienced some growth, but it was limited in its overall impact on prices. Meanwhile, slaughterhouses became more cautious in their purchasing after meeting their procurement targets, leading to a renewed dip in prices. This prompted producers to sell off stock and realize cash, resulting in an ample supply in the domestic market.
Domestic corn prices also trended slightly weaker last week, falling by 0.19%. With live pig prices fluctuating at low levels, the domestic hog-to-grain price ratio hovered around 4.8:1. As a result, the pig farming industry remains in a loss-making state.
SunSirs analysts believe that the domestic live pig market will continue to face ample supply in the short term, making it difficult for prices to make a decisive move in either direction.