Price summary

Although live hog prices in most production regions in China were stable to marginally higher for short periods during the week ending May 22, prices generally remained weak.

Market analysis

Live hog prices edged higher at a gradual pace in some areas of the Jiangsu, Guangxi, Henan, Hebei and Hunan regions. However, this generally failed to lift prices in other local areas.

In Henan, hog prices generally rose by RMB0.10/kg from the previous week. This was mainly because many live hogs were delivered to Guangdong province during the earlier period when Henan's hog prices were relatively lower than those in southern regions.

Currently low hog inventories in Henan, the presence of many local large-scale pork processing enterprises and relatively higher hog demand than other provinces also lent support to Henan's hog prices.

Hog farmers in some regions were restrained in releasing their hogs for sale on weak procurement prices, leading to a continued increase in body weight of hogs kept as inventories. Thus, hog deliveries from those regions were difficult.

Meanwhile, domestic pork prices including those in coastal cities continued to weaken amid sluggish demand.

With the start of summer in China, the memory of last year's pig disease outbreak in Sichuan province remains fresh in consumers' minds. This currently weighs on domestic pork demand.

Market forecast

Although China's hog prices are expected to remain weak in the near term, further price falls will be unlikely amid reduced supplies. The country's approaching Dragon Boat Festival on May 31 should also support the domestic hog market to some extent.