Market analysis

Hog prices in the provinces of Shandong, Jiangsu, Guangdong, Sichuan and Guangxi Zhuang Region were stable to higher during the week in review. Pork consumption were up while cross-province deliveries had also increased.

Strong demand for ham and sausage also helped to boost hog prices in these provinces and region. Prices of foreign common crossbreed hogs were up by RMB0.20/kg while those of native common crossbreeds were up by a smaller margin.

Prices in Hebei, Hubei and Hunan provinces were stable after making significant gains in the previous week. Farms' hog stocks have increased but did not have a significant impact on prices.

Hog prices in Henan province were slightly lower. Supplies increased as hog raisers sent more animals for slaughtering to reduce cross-province transport costs.

Market forecast

Abattoirs and meat plants have acquired sufficient hog stocks in the past week. However, consumer demand for pork is expected to continue rising in the run up to Spring Festival (falls on Jan 29). China's hog prices are expected to remain firm in the week ahead.