China Piglet Market Weekly

CHINA - In this weeks China Piglet Market Weekly, eFeedLink report that China's piglet prices were higher during the week ending Sep 14.
calendar icon 18 September 2006
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Price summary

Buying interest continued to improve, after successful containment of the recent pig disease outbreak helps to boost hygiene standards in previously affected areas, which also helps in renewing raisers' confidence.

Market analysis

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

Cooler weather conditions have prevailed in regions previously affected by high heat and high humidity levels. This thus greatly reduced the possibility of pig diseases recurring on a massive scale. Despite some sporadic outbreaks and some bans on piglet trade remaining in effect, buying interest in regions unaffected by it has continued to improve.

Meanwhile, hog prices have also moved higher in recent days. Medium and big sized farms were able to bring in profits of RMB100 and RMB50-80 per head of hog sold. The better returns from hog sales thus bode well for piglet buying activities.

As the pig disease situation had been brought under control, coupled with the approach of the holiday season in early October, more traders were active in taking up hog supplies. The need to replenish piglets had thus risen.

In Hunan province, the price of 10-kg foreign common crossbreed piglet was up RMB10 per head amid active trade. In neighbouring Jiangsu, prices of 15-kg foreign common crossbreed piglets rose more than ten percent to RMB250-280 per head on the back of higher hog prices there.

Despite overall improvement in piglet buying interest, market transactions of piglets have not picked up much in certain regions. Lingering concerns over pig disease, as well as the higher price of corn had prevented some raisers from replenishing piglet stocks.

Market forecast

Hog prices in China are expected to maintain their upward moving momentum and this should boost demand for piglets. In southern China, anticipation of better market fundamentals in the hog market have led some raisers to place advance piglet orders with big commercial farms or breeders.

In the week ahead, market transaction in China's piglet market is seen to increase and prices are expected to make more gains.

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