Price summary

Losses made by many livestock farmers have dampened the near term outlook of the domestic hog market.

Market analysis

Hog prices in southern China fell by a smaller extent compared with those in northern regions. This was mainly due to more workers relocating to the southern regions, which lent some small support to pork demand there. With the resumption of regular deliveries to Hong Kong and Macau, hog export prices were relatively higher, with only minimal impact from weaker domestic prices.

Only few hog deliveries were made from northern to southern regions. There was little price difference between nearby provinces while hog raisers were unwilling to sell their stocks at a loss in light of high transport costs over long distances, and were inclined to adopt a wait-and-see attitude.

Market forecast

With hog raisers unwilling to release their stocks at below cost, the resulting build up in inventories has disturbed market equilibrium. As domestic pork demand is seen unlikely to pick up in the near term, live hog prices in China are expected to continue moving lower in the next one or two weeks.