eFeedLink - China Live Hog Weekly: Prices tumble further amid excess availability (week ended Jan 25, 2019)

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February 4, 2019

China Live Hog Weekly: Prices tumble further amid excess availability (week ended Jan 25, 2019)

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Price summary

Prices continued to fall.

Region	Province	Average price this week	Average price last week	Price change
North China	Hebei	10.19	11.05	-0.86
North China	Henan	10.30	10.90	-0.60
East China	Shandong	11.84	12.58	-0.74
East China	Jiangsu	12.13	12.78	-0.65
Central China	Hunan	10.33	11.76	-1.43
South China	Guangxi	11.74	12.50	-0.76
South China	Guangdong	11.81	13.03	-1.22
Southwest China	Sichuan	15.79	18.32	-2.53
(All prices in RMB/kg) RMB1=US$0.1483 (Feb 4)

Market analysis

Farmers were eager to release hogs before the Chinese New Year holidays, as demand is set to dwindle after the festive break. With hog supplies surging, pork carcass volumes increased prominently by 6.6% to 10,227 tonnes.

Nonetheless, prices of hog plummeted 8.5% as slaughterhouses slashed prices amid poor sales of pork products. This dragged pork carcass prices down by 3.3% to RMB17.70/kg.

Market forecast

With supplies abundant while pork demand is poorer than expected to due to the African swine fever outbreak, hog market is projected to remain weak during the last week of January. However, following the sharp fall in prices over the past two weeks, hog prices should slide at a slower rate.

eFeedLink offers monthly China hog and poultry market trackers, including analyses and on-the-ground information from Guangxi, Guangdong, Hunan, Hubei, Sichuan, Jiangsu, Henan, Shandong, Hebei and the whole of China. These provinces cover at least 70% of the total hog, poultry and related feed production or consumption in China. For more information, visit: http://www.efeedlink.com/eFLResearch