China Live Hog Weekly

CHINA - In this weeks hog report, eFeedLink report that live hog prices in China remained stable during the week ending Jun 19.
calendar icon 21 June 2006
clock icon 3 minute read

Market analysis

In Sichuan province, more live hogs were released into local markets as hog prices there gradually improved. Frozen pork was also released into local markets at a faster pace, while local hog procurements increased on improved frozen pork prices there.

Hog prices in other provinces were generally stable. In Guangdong province, hog prices were mostly stable to marginally higher during the past week. But with continued cross-province hog deliveries into Guangdong, and no pick up in the region's hog exports to Hong Kong, hog prices in some parts of Guangdong moved lower.

In southern China, continued torrential rains and lower temperatures over the past few days led to increased hog deliveries from northern (including Henan province) to southern regions through the Jingzhu expressway.

Due to the presence of clenbuterol recently found in hogs in Guangxi province, local hog prices moved lower over the past few days.

Live hog inventories in China have fallen significantly from the earlier period, almost halved or more in some parts of major hog production regions. Despite this positive market development, the hot weather conditions and reduced pork demand in China have weighed on the country's hog prices.

In the weeks ahead, China's live hog inventories should continue to fall with more hogs released into the market and no pick up seen in piglet inventory replenishment activities. Hog prices in China should also improve once domestic pork demand increases.

Market forecast

The fall in China's live hog inventories provided only minimal support to hog prices in the country. Warmer weather in the week ahead is likely to dampen domestic pork demand and thus hog deliveries. Therefore, live hog prices in China should stay mostly stable in the near term, with minor fluctuations seen in some regions.

Source: eFeedLink - 20th June 2006

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