China Live Hog Weekly
CHINA - In this weeks hog report, eFeedLink report that prices
of live hogs in China improved for the week ended Oct 31 although
market undertone has remained weak.
1. Price summary
As supply has continued to exceed demand, hog prices are not expected
to pick up significantly in the near term.
2. Market analysis
Hog prices in northern China's provinces of Henan and Hebei were
higher while those in parts of Shandong province have risen slightly.
In central China's provinces of Hunan and Hubei, live hog prices
have edged up marginally, reversing the downtrend of the previous
weeks. Prices in Guangdong and Guangxi Zhuang AR have also recovered
from recent lows. In Sichuan province, prices were generally stable.
Prices in Jiangsu province have increased slightly compared with
the previous week.
The slight increase in hog prices in areas of northern China such
as Henan, Hebei, Shandong and Liaoning was due to a drop in market
supplies, a result of the recent occurrence of live hog disease.
Hog prices in Hunan and Hubei were stable to marginally higher
while those in Guangdong and Guangxi have edged higher compared
with the previous week. Due to the occurrences of the bird flu in
some parts of Hunan, demand for the province's broiler from buyers
in Hong Kong, Guangdong and Guangxi have fallen. Meanwhile, demand
for hogs in Guangdong and Guangxi have increased, thus pushing up
live hog prices. In Hong Kong, increased demand for hogs produced
in Guangdong, Guangxi and Hunan has enabled prices in these provinces
to pick up or stabilise. In Guangzhou, live hog prices have risen
to RMB7.40 - 7.60/kg with those in other areas also edging higher.
In Jiangsu, hog prices were firmer. In Yancheng and Lianyungang,
prices were basically stable. Hog prices in other areas of the province
were still at a low level. Given the low profit margins, hog-raisers
there have chosen to hold on to their stocks. The bird flu outbreak
in neighbouring Anhui has led to higher pork consumption. Thus,
live hog exports from Jiangsu to other provinces have increased.
In Sichuan, hog prices remained stable. In Mianyang and Jiangyou,
prices were marginally higher. Prices of native common cross-breed
lean hogs ranged from RMB6.20/kg to RMB6.40/kg while those of foreign
common mixed-breed lean hogs were priced at RMB6.80/kg with signs
of more increases to come. Prices in Wusheng region have fallen
to RMB5.80/kg.
3. Market forecast
Live hog inventories in the major hog-producing provinces of Sichuan,
Hunan and Henan have stayed high. Meanwhile, hog exports from Hunan,
Hubei and Guangdong to Hong Kong have also increased as the bird
flu has led to a change in consumer preference for meat. With bird
flu outbreaks in China expected to be successfully contained, any
further gain in hog prices may not be substantial in the week ahead.
Source£ºwww.thepigsite.com
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