Market analysis

Lower live hog prices lately had dampened hopes of a year-end rise in piglet prices as expected by some hog raisers. Piglet buying activities have thus slowed.

In the provinces of Shandong, Hunan, Jiangsu and Guangxi Zhuang region, higher hog feed prices and lower temperatures discouraged raisers from buying piglets. Prices were lower on poor buying interest.

Piglet prices in Henan and Hubei were stable. Hog raisers mainly remained on the sidelines on lower hog prices there.

In Sichuan, Hebei and Guangdong provinces, piglet prices were marginally higher on improved hog prices and reduced sow stocks. Increased buying by traders from other provinces has also pushed piglet prices higher.

Market forecast

Concluding, near-term piglet prices in China may register marginal falls as supply is expected to exceed demand. Live hog price movement will continue to have a significant influence on piglet prices.

Source: eFeedLink - 6th January 2006