Price Summary

Piglet prices were down in the provinces of Shandong, Hubei, Hunan, Jiangsu, Guangdong and Guangxi Zhuang Region. In Henan, Hebei and Sichuan provinces, piglet prices were unchanged.

Market analysis

In China's main hog production regions, few piglet purchasing activities were seen. In some regions, as much as 50 percent of farms no longer carry hog inventories. Most raisers were reluctant to replenish piglet inventories as hog prices had continued to stay weak.

Most small hog farmers are cash-strapped after incurring huge losses due to the persistent weakness in hog prices. After channeling limited cash to buying farm tools and other necessities in preparation for spring sowing, many do not have much to spare for buying piglets.

Meanwhile, sow raisers would also incur losses if they put up piglets for sale. Thus, most of them prefer to keep piglets in their farms and wait for prices to improve. The higher temperature had also raised piglet survival rates and caused piglet supplies to increase significantly in most regions.

Substantial gains in corn prices and steady hog feed prices also mean that hog production cost will remain relatively high. This had also affected buying interest of piglets.

Market forecast

Near-term demand for piglets in China is not likely to pick up on the back of weak hog prices and rising feed cost. Piglet prices would also be driven lower by increased piglet supplies as piglet survival rates increased with warmer weather conditions. The weak demand situation in China's piglet market is likely to persist into the next few weeks.