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05

2022

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11

China's Pork, Egg and Chicken Wholesale Prices in Oct

Source:

OIG+X

According to the data from MARA, China's pork wholesale prices in Oct show a prominently surging trend especially after the second week.

 

Note*: The following prices are close to retail prices in China, rather than the prices for domestic slaughterhouses. USD to CNY exchange rate is 7.2.

 

According to the data from MARA, China's pork wholesale prices in Oct show a prominently surging trend especially after the second week. The highest price is 4.96 $/kg (35.69 yuan/kg) while the lowest one is 4.41 $/kg (31.78 yuan/kg) on the second day. This month saw the National Day during Oct 1-7. However, there saw no prominent rise as usual in that holiday period. The main reason for the surge in pork prices is believed to be the intentional short supply in market. Some farmers bought hogs for second or multi-times fattening to rise up prices. It can be proved by that the number of hogs sold were greater than those for slaughtering. Recently, the weight of slaughtered pigs is approaching a 6-year high.

 

The average of pork wholesale price is 34.16 yuan/kg, 4 yuan/kg higher than the price of 30.82 yuan/kg last month, showing a 11% growth MoM, far away than expectations.

 

Mostly affected by the strict pandemic control, the consumption went not well. It can be seen from the chart that chicken wholesale prices are stable with not many fluctuations. Its monthly average price is 19.19 yuan/kg, only up 0.16 yuan/kg than last month.

 

While egg prices show a prominently upward trend the peak price is 1.76 $/kg (12.66 yuan/kg) on Oct 28, and the nadir is 1.59 $/kg (11.48 yuan/kg) on Oct 4, the beginning of the month. Usually, Oct is the off-season for egg consumption. While that egg prices rose this year Oct is mainly due to four reasons: the tight supply of laying hens, high purchasing demands of food companies, pulled demand by end-consumers stocking, and feed costs support. At present, egg prices are in the historical high level. It's estimated that downstream dealers may take a cautious attitude to mitigate risks.