eFeedLink - China Live Hog Weekly: Prices plunge 18% in January (week ended Feb 1, 2019)

Market Reports

February 7, 2019

China Live Hog Weekly: Prices plunge 18% in January (week ended Feb 1, 2019)

An eFeedLink Exclusive

Price summary

Prices dipped further.

Region	Province	Average price this week	Average price last week	Price change
North China	Hebei	10.06	10.19	-0.13
North China	Henan	10.45	10.30	0.15
East China	Shandong	11.41	11.84	-0.43
East China	Jiangsu	12.05	12.13	-0.08
Central China	Hunan	10.37	10.33	0.04
South China	Guangxi	11.08	11.74	-0.66
South China	Guangdong	11.83	11.81	0.02
Southwest China	Sichuan	14.84	15.79	-0.95
(All prices in RMB/kg) RMB1=US$0.1483 (Feb 7)

Market analysis

Hog slaughter volumes continued to expand as farmers rushed to clear stocks in anticipation of a poor post-Chinese New Year market. Pork carcass volumes expanded substantially by 5.86% as a result to 10,826 tonnes, hence dragging the average price down by 2.88% to RMB17.29/kg.

Over the week, hog prices dropped another 2.2%, contributing to January's 18% plummet.

Market forecast

The quantity of finishing hog will be greatly diminished after the festive break due to expedited releases during January. Nevertheless, hog market is expected to remain soft despite low availability as the rampant spreading of African swine fever shatters pork demand.

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