Price summary

Piglet replenishing activities have continued to pick up in the southern provinces of China during the week ending Aug 17.

In northern China, piglet buying interest was lacklustre, and fewer farmers were active in taking up supplies. In Sichuan province, piglet replenishment were affected by the significant movements in hog prices there.

Market analysis

Key characteristics of China's piglet market during the week under review were as follows:

• Summer temperatures had remained high in China. In the south-west, temperatures have hit as a high as 40 deg C. Such high temperatures are seen to affect the rate of fattening hogs and had thus dampened farmers' interest in taking up piglet supplies.
  
  
• During the week in review, the pace of improvement in hog prices in northern China had slowed, with the biggest gain seen at only RMB0.10/kg. In the south, hog prices continued to rise by between RMB0.15-0.25/kg. Hog raisers in the south continued to bring in more profits and were more active in purchasing piglets.
  
  
• Pig diseases were reported in the southern provinces (south of the yangtze River) of Jiangxi and Hunan, but have been brought under control. In neighbouring Guangdong and Guangxi, farmers continued to be active in replenishing piglet inventories. A few big-sized commercial farm owners there reported that some traders had already placed advanced orders for piglets.
  
  
• In the south-western province of Sichuan, the wider movement in hog prices had affected piglet purchasing activities. Overall, piglet prices there had ended unchanged compared to a week ago, but there were significant fluctuations within the week under review.

Market forecast

In the week ahead, piglet replenishment activities in southern China are expected to pick up further with improved hog market fundamentals. However, in regions where pig diseases are reported, farmers may put on hold any decision to buy piglets.

In the north, hog prices are not expected to see much gain. Piglet prices there are likely to remain close to current levels on fewer piglet purchases.