Price summary

Hog supplies have increased as abattoirs and meat plants in some regions reduced their hog purchases.

Market analysis

Hog prices in Shandong, Hunan, Hubei and Jiangsu provinces were lower during the week. Prices edged higher in the previous week on increased demand by meat plants and frozen food companies. However, lower demand by these companies during the week in review led prices to decline slightly in these provinces.

In Henan province, hog prices were stable. Fewer purchases by exporters and abattoirs as well as lower supplies had helped prices to remain stable.

In the provinces of Hebei and Guangdong as well as in Guangxi Zhuang Region, live hog prices increased on higher pre-festive demand. Meat plants increased hog purchases due to higher pre-festive demand for their products.

Hog prices in Sichuan province were higher with more effective control of pig diseases. Higher pork consumption at year's end as well as increased cross-province deliveries also provided support to prices.

Market forecast

Hog prices in China are expected to weaken slightly in the week ahead as pre-festive demand starts to wane. Generally, demand from abattoirs and meat plant are likely to decline as most have acquired sufficient stocks in the past weeks.

Source: eFeedLink - 3rd January 2006