1. Price Summary

Most meat product businesses have completed stocking up inventories in the run up to the Spring Festival that falls in late January. Fewer hog procurements were seen, while hog raisers anticipating a drop in hog prices after the Spring Festival have released more hogs into the market to clear their stocks quickly.

With more workers returning to their villages as the Spring Festival approaches, pork demand in large and medium cities fell. On the other hand, pork demand in rural areas has gradually improved lately.

Market analysis

Hog prices in Hebei province were stable to marginally higher recently. Local pork prices improved following increased demand for the meat. Local hog supplies were unable to meet demand, which lent support to hog prices there.

In Henan province, local pork demand has risen, while the number of live hogs released into local markets has steadily increased. Coupled with the fact that recent heavy snowing has significantly limited cross-province deliveries, hog prices there consequently remained stable lately.

More live hogs were released into markets in Sichuan province recently. The recent bird flu outbreak in Dazhu county has dampened local poultry demand, but led to significantly higher demand for pork. Thus, local hog prices were stable in recent days.

Hog prices in the provinces of Shandong, Jiangsu, Hunan, Hubei, Guangxi and Guangdong moved lower lately. Hog raisers have taken the opportunity to release more hogs into local markets before the Spring Festival arrives. Frozen meat storage plants also held sufficient inventories during the earlier period. Meanwhile, pork demand in those regions was stable lately.

Market forecast

As most abattoirs and meat product businesses have completed stocking up inventories for the approaching Spring Festival, live hog prices in China are expected to move lower in the week ahead.

Source: eFeedLink - 24th January 2006