Price summary

China's piglet prices remained weak in the week ending Apr 27. Market transactions were low on poor buying interest.

Market analysis

China's piglet prices have stayed weak on account of the following:

• Many hog raisers were still incurring losses and few were active in buying piglets.
• Some raisers have given up on hog farming and very few small hog farm holders are buying piglets to be raised as fattened hogs.
• Sow raisers and big commercial pig farms were selling piglets at a loss to clear their inventories. Losses per head of piglet amounted to more than RMB100.

Meanwhile, reports of more cases of pig diseases under the increasingly warmer weather conditions also have a negative impact on prices and demand for hogs and piglets.

Middlemen in the piglet trade reported that the poor outlook for the hog market has affected piglet buying interest. Some small hog raisers who had earlier indicated their intention to buy have mostly not done so.

Market forecast

China's piglet market is expected to remain oversupplied in the near term. Unless demand and prices of hog products improve substantially and lifts profit for raisers, piglet buying interest is expected to remain weak for the near term. More downside is seen for piglet prices in the week ahead.