Market analysis

Pig diseases such as swine fever and had recurred in some regions, resulting in a significant number of pig deaths in affected farms. To avert risk, most farmers shelved plans to replenish piglet stocks.

Higher corn prices this year also contributed to increased feed corn cost by about RMB40-50 per head of finished hog. This had also deterred some farmers from taking up piglet supplies.

A big number of small- and medium-sized farms have been active in reducing their hog inventories. Demand for piglets has thus declined. Some traders reported that the number of piglet buyers had declined by some 30 percent compared with a month ago.

Market forecast

Higher feeding cost and the recurrence of pig diseases will continue to dampen buying interest in China's piglet markets. Near-term prices are seen weak.

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