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12

2022

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12

China's Live Pig Price Decline May Help Reduce Inflationary Pressure

Source:

OIG+X

This weekend, the price dropped sharply for two consecutive days, and the selling price gap between pigs with standard weight and fat pigs in Northeast China was upside down, and fat pigs couldn't be sold. The price of standard pigs in Northeast China was reduced, followed by Shandong and Henan province. The quotations in various regions were chaotic dropping three times a day.

The price of live pigs in China has plummeted, which may restrain the rise of food prices in the world's largest pork producer and consumer.

 

This weekend, the price dropped sharply for two consecutive days, and the selling price gap between pigs with standard weight and fat pigs in Northeast China was upside down, and fat pigs couldn't be sold. The price of standard pigs in Northeast China was reduced, followed by Shandong and Henan province. The quotations in various regions were chaotic dropping three times a day. The price of pigs with standard weight in Sichuan was lower to 20 yuan/kg, and in Hunan was even less than 9 yuan/kg. The live pig futures of Dalian Commodity Exchange fell more than 7% on Mon (Dec 12), hitting the lowest level since Apr. The DLY pig price has dropped below 22 yuan/kg, reaching around 21 yuan/kg.

 

Farmers rushed to send live pigs to slaughter to meet the demand before the Spring Festival in Jan next year, but found that consumption was not as strong as expected.

 

China's animal husbandry enterprise Muyuan recently raised its forecast for pig slaughter this year. Wang Xiaoyang, senior analyst of Guojin Futures, said that this shows that the market may usher in more supply this month. Wang Xiaoyang also said that the demand for salted and smoked meat was also weaker than expected, which puts pressure on prices. Small farmers are increasing their sales due to the fear of further price decline.

 

Not until the government eased the epidemic prevention regulations and policies, that consumption this year began to rise slowly and transportation and logistics were also been improved, leading to more meat products entering the market.