China Piglet Market Weekly - Piglet Prices Gain
CHINA - In this weeks China Piglet Market Weekly, eFeedLink report that piglet replenishing activities have continued to pick up in the southern provinces of China during the week ending Aug 10.
11 August 2006
3 minute read
Price summary
In parts of Hunan, piglet prices gained as much as RMB2.0/kg during the week in review. In Guangdong and Guangxi, higher live hog prices as well as increased demand have lifted piglet prices.
In northern China, piglet buying interest was lacklustre. Few farmers were active in taking up supplies.
Market analysis
Key characteristics of China's piglet market during the week under review were as follows:
Hog prices were relatively higher in the south, with prices in Guangdong reaching RMB9.0/kg during the week in review. Big and medium-sized farms there were able to bring in profits amounting to RMB150 per head of hog. Piglet replenishment activities had also picked up on the back of higher hog prices.
Piglet deliveries from the north to the south were hampered by the hot weather conditions, which is seen to affect piglet survival in long distant transport. Thus, traders were unwilling to take the risk of delivering big numbers of piglets to the south. As supplies could not meet demand, this had driven up piglet prices in the markets of southern China.
Piglet replenishing activities in northern China had slowed a little as hog prices in the main production regions of Henan and Shandong province failed to sustain recent gains. In Henan, hog prices were lower by RMB0.20/kg and this has somewhat affect piglet buying interest.
In parts of south-eastern China, flooding had destroyed some farms and affected piglet replenishing activities. Outbreaks of some pig diseases in the wet environment had discouraged some farmers from taking up piglet supplies.
Market forecast
As China's hog inventories were relatively low, analysts expect hog prices to sustain their recent gains in most regions. The marginal decline in feed corn prices lately will also lower the cost incurred in fattening hogs.
On the back of improving fundamentals in China's hog market, piglet replenishment activities, particularly in southern China, is likely to pick up further in the week ahead.
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