Market analysis

Despite improved hog prices, farmers' piglet replenishment activities remained weaker than expected in some regions for the following reasons:

Corn prices continued to surge, resulting in higher production cost for hog farmers. This led some farmers to postpone plans to take up piglet supplies.

Sub-zero temperatures in the north-east as well as rapidly declining temperatures in the Yellow River regions of northern China means that farmers there have to incur extra cost to maintain optimum temperature in their farms, and in disease prevention measures.

Pig disease continues to pose a threat to farms in northern and southern China. Although outbreaks in some regions had been brought under control, some farmers were still cautious, preferring to buy fewer piglets or put on hold any plans to purchase them.

Market forecast

Despite the better hog price outlook next year, piglet replenishment activities were only slightly higher in some regions. In the week ahead, piglet replenishment activities are seen to improve in some areas of southern China where hog prices are higher.

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