Market analysis

Despite fewer outbreaks of pig disease, the recovery in the pace of piglet replenishment was slower than expected. Only in a few regions did piglet buying activity increase.

In most regions, piglets on offer were within the lower weight range of 15-25kg per head. With less than four months to the Spring Festival in February 2007, it is not likely that their finishing weight will reach 100kg as the colder weather, particularly in the north, will slow the fattening process.

Hog prices failed to maintain their rising momentum after early October's National Day holidays. Farmers were thus not eager to sell their hogs at prevailing prices. This, coupled with the fact that most farmers currently prefer to maintain a small inventory, caused demand to decline.

Higher corn prices and rising soymeal prices have also pushed up feed costs for fattening hogs. Cautious farmers were thus less active in taking up piglet supplies.

Market forecast

With buying interest not seen to pick up, prices are expected to decline in most regions in the week ahead.

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