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2022

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11

Cold Waves Sweep China Boosting Cured and Preserved Pork Consumption

Source:

SCI99

The decline in pork prices is seen as one market correction behavior. It's time for secondary-fattening hogs to be sold in the breeding market with large quantities of supply.

 

The decline in pork prices is seen as one market correction behavior. It's time for secondary-fattening hogs to be sold in the breeding market with large quantities of supply. As there wasn't found any improvement in pork consumer demand, prices of hog futures and spot have both declined recently.

 

Temperatures in most parts of north China and central and eastern China will drop by 10℃ to 16℃ from November 27 to 30, with some areas expected to see temperatures drop by more than 18℃, the China Meteorological Administration (CMA) said at 9 am on November 27.

 

In recent days, Wen's, Tang Renshen, XinWufeng, Tianbang Technology and other listed breeding companies replied to investors that the window for consuming cured and preserved pork is about to open, and the southern market is expected to release a wave of boom demand, bringing up the price of live pigs.

 

There is no possibility for a deep fall in prices of futures and spot hogs, and yet for a re-surge due to weak consumer demand. The prices are expected to maintain a slight fluctuation before Feb 2023, the ending of cured pork on-season. The market will gradually embrace off-season when entering Apr the demand-supply game may be intensified.

 

In the fourth week of November, the average market prices of live pigs, piglets and fresh pork (lean meat) in Hunan province were 12.48 yuan/jin, 24.54 yuan/jin and 21.82 yuan/jin respectively, down 5.56%, 4.81% and 4.05% compared with the third week (from Nov 14 - 18), respectively. Weekly declines increased by 3.05, 3.77 and 2.62 percentage points respectively, down 13.30%, 6.66% and 7.89% compared with the same period in Oct, and up 25.81%, 46.07% and 33.21% year-on-year.