Market analysis

Despite higher hog prices in the week in review, near-term profit concerns as well as increased protein meal prices had kept raisers cautious in buying piglets.

In the provinces of Shandong, Guangdong and Sichuan, small farms and backyard farmers were generally not interested in making piglet purchases. Buying of piglets by a few big farms has failed to prevent prices from declining.

Piglet prices in the provinces of Henan, Hebei, Hunan and Hubei were unchanged. Buying interest was affected by the discovery of pig diseases in some farms. Cross-province deliveries of piglets have also declined.

In Jiangsu province and Guangxi Zhuang Region, piglet prices were higher on improved hog prices. Transactions concluded was, however, not as high as expected.

Market forecast

Concluding, near-term piglet supply is set to exceed demand. Live hog price movement will continue to have a significant influence on piglet prices in the week ahead.