Market analysis

Many pregnant sows had reportedly been infected with the pig disease earlier. Backyard farmers, most of whom will not be able to take production losses, were deterred from taking up piglet supplies for fear that the young piglets would also be infected with the disease.

As piglets procured in the past week would not reached finishing weight by the Spring Festival (Chinese New Year) in February 2007, farmers were less active in buying supplies. High feed corn and soymeal prices had also discouraged some potential buyers from buying supplies.

Only a few backyard farmers who had given up on hog raising earlier have shown some interest in taking up piglet supplies.

Market forecast

Analysts say that pig disease outbreaks and the fact piglets purchased currently will not reach maturity in the Spring Festival of next year will continue to limit buying interest. Given these factors, any further improvement in hog prices may not lead to a big increase in piglet replenishment activities in the week ahead.

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