China may intervene in hog market as prices fall sharply

China may soon have to take measures to prevent a further fall in hog prices, the country's economic planner said Thursday.

 

The ratio between hog and corn prices is at 6.18:1, not far from the 6:1 level that would trigger government intervention, the National Development and Reform Commission (NDRC) said in a statement posted on its Web site.

 

The average end-April hog price was RMB10,130 a tonne, while corn's average wholesale price was RMB1,640/tonne, it said.

 

Ample domestic hog supply has pushed the average end-April hog price 10-percent lower on month, while piglet prices have fallen by 13 percent to RMB17,070/tonne, the NDRC said.

 

Ongoing concerns about the spread of A/H1N1 flu have also plagued pork consumption, some industry participants said.

 

The government could give hog farmers subsidies or purchase hogs for state reserves, the NDRC said previously.

 

US$1 = RMB6.82221 (May 7)