Knowledge

To provide the latest market news and hold online & offline events to assist you being well-informed and making decisions.

19

2023

-

06

China’s Pork Prices May Experience a Slight Increase Before the Dragon Boat Festival.

Source:

This week, pork prices first dropped and then rebounded, with the average price slightly lower WoW. Influenced by strong supply and weak demand, pork prices continued to decline in the first half of the week. However, in the latter half of the week, there was a decrease in the number of breeding farms and an increase in reluctance to sell live pigs, resulting in a temporary tightening of market supply and a slight increase in pork prices. On Jun 18, the average daily price of DLY pigs in mainstream Chinese markets increased, with the national average price reaching 14.26 yuan/kg, a 0.08% increase compared to the previous day.

This week, pork prices first dropped and then rebounded, with the average price slightly lower WoW. Influenced by strong supply and weak demand, pork prices continued to decline in the first half of the week. However, in the latter half of the week, there was a decrease in the number of breeding farms and an increase in reluctance to sell live pigs, resulting in a temporary tightening of market supply and a slight increase in pork prices. On Jun 18, the average daily price of DLY pigs in mainstream Chinese markets increased, with the national average price reaching 14.26 yuan/kg, a 0.08% increase compared to the previous day.

 

As the Dragon Boat Festival (Jun 22) approaches, the market sentiment is becoming more bullish due to pre-holiday stocking. Pork prices continue to rebound, although the increase range is gradually narrowing. The Dragon Boat Festival has a short-term positive impact on pork prices, but the pre-holiday stocking may not be strong. As the holiday effect diminishes, there is a risk of pork prices experiencing another round of decrease.

 

Currently, pork inventories are sufficient, and the average weight of newly slaughtered large pigs remains high. Overall, there is still a significant oversupply of pork, which limits the potential for a substantial increase in pork prices in Jun. It is expected that pork prices will experience segmented increases during the months of Jul to Sept 2023, as well as in Dec 2023 and Jan 2024.

 

However, considering the current consumption situation and based on objective supply and demand data, achieving a significant and rapid increase in pork prices within this year is extremely challenging. It is highly probable that most regions will experience losses in pig fattening during the first half of the year. Jun serves as a turning point for price trends and the profitability of pig fattening for pig breeding farms. It is expected that the average probability of losses for pig farming enterprises nationwide throughout the year will be relatively high.