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07

2023

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07

China’s State Reserve May Have Limited Impact on the Pork Oversupply

Source:

OIG+X

On July 7, 2023, the state reserve of frozen pork will undergo a rotation, with same quantity of pork being released from storage and being collected, involving the rotation of the existing 28,750 tons of reserved pork and the addition of newly purchased 28,750 tons of pork. This move is aim to avoid disrupting the normal operation of the live pig and pork market.


On July 7, 2023, the state reserve of frozen pork will undergo a rotation, with same quantity of pork being released from storage and being collected, involving the rotation of the existing 28,750 tons of reserved pork and the addition of newly purchased 28,750 tons of pork. This move is aim to avoid disrupting the normal operation of the live pig and pork market.

 

This reserve meat operation is a routine rotation of the storage, and the policy measures are not as strong as expected by the market. Sentiments in the breeding industry have weakened, with the slowed down trend in pork prices increase. However, due to the large inventory in the slaughter process and the continued low demand for pork consumption by residents during the seasonal downturn in the summer, and with no short-term holiday-related increase in demand expected in July, overall consumption remains sluggish.

 

In conclusion, it will be extremely difficult to achieve a significant and rapid increase in pork prices. The current status of pork collection, which is like a drop in the bucket, still faces fundamental challenges in fundamentally reversing the situation of oversupply in the pork market.