Price summary

In southern China, hog prices generally rose by a smaller extent compared with the previous week, while hog prices in northern China remained stable. Although there were price fluctuations in south-western China's Sichuan province, local hog prices ended marginally higher at the close of the week in review.

Market analysis

Hog prices in some areas of Hunan province fell significantly in the past week. Due to the presence of clenbuterol found in hogs in Hunan, cross-province deliveries from Hunan were hampered. However, authorities have cut down on transport fees to increase cross-province deliveries from Hunan, which reduced the negative impact of clenbuterol on local hog prices.

Due to reduced hog inventories in Sichuan, there have been no pork exports to Russia for a long time. The advantage of low hog transport costs in Sichuan was also lost due to hot weather.

However, authorities carried out a plan that facilitated frozen meat to be released into local markets at a faster pace. Consequently, cross-province deliveries of frozen pork from Sichuan to other southern regions increased in the past week, driving up frozen pork prices in Sichuan.

Hog prices in Guangdong province are currently the highest nationwide. The presence of clenbuterol found in hogs in some other provinces has resulted in demand for better quality hogs in Guangdong. Thus, local hog prices were stable to marginally higher.

Local integrated farm operations are currently optimistic in their outlook for Guangdong's hog prices in June. Although the quality of hogs delivered into Guangdong has improved, slightly fewer numbers have been arriving compared with the earlier period, especially in light of recent heavy rains in the region.

Market forecast

Reduced pork demand combined with currently high transport costs for hog and frozen meat deliveries are expected to keep China's hog prices generally stable in the week ahead. Minor price fluctuations amid tight local supplies are seen in some regions.