Price summary

Lower temperature coupled with increased rainfall in some areas previously affected by the dry spell had led buying interest to improve.

However, in regions that still experiences high heat and high humidity levels, raisers were less active in taking up supplies. Overall, the pace of improvement in piglet purchasing activity was uneven.

Market analysis

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

On Sep 5, China's Deputy Agricultural Minister announced that the situation in the pig disease-affected regions of southern China (south of the Yangtze River) had been brought under control. Fewer outbreaks were reported.

Meanwhile, animal disease control officials across China have been putting in great efforts to prevent further spread of the pig disease, a move which had helped restored buyers' confidence. Piglet buying interest in some of the previously disease-affected areas has improved.

In Hunan, Jiangsu, Shandong, Jiangxi and Guangxi, raisers were active in taking up piglet supplies. Prices of 10-15 kg foreign crossbreed piglets were up RMB10-20 per head in Jiangxi and Hunan.

On Sep 6, traders reported better piglet sales in Guangdong and Guangxi. Farmers were active in replenishing stocks and more hogs were sold to meet increased pork demand from schools that have re-opened. In these two regions, prices of 15 kg foreign crossbreed piglets were up RMB20-40 per head, or 7-15 percent compared with the previous week.

Prices of piglets in the north and south may have widened but analysts say this may not result in more cross province deliveries. As piglets' body weight varies, and depending on the pricing method--some traders may price them on a per head basis (RMB per head), it may not translate into bigger profits for some traders.

Additionally, raisers in certain regions who are still concern over a possible spread of the pig disease had not been active in taking up piglets delivered from other provinces.

Market forecast

On the back of receding concerns over the pig disease outbreak, lower hog inventories and the recent pick up in hog product prices, buying interest in China's piglet markets is likely to pick up further in the week ahead.

However, analysts say the pig disease still remains a threat in some regions. Piglet prices are only expected to rise in regions where raisers are more active in taking up supplies.

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