June 19, 2013
 

China hog and pig feed prices rebound modestly in first week of June

China's hog prices averaged RMB13.87/kg (US$2.26/kg) in the first week of June, an increase of RMB0.36/kg (US$0.059/kg), or 2.9% compared to the previous week. As a result, hog traders experienced lower buying pressure for hog.

Weekly transacted hog prices in China ranged from RMB15.04/kg (US$2.45/kg) in the northwest to RMB12.83/kg (US$2.10/kg) in the south.

Mean hog prices for the week are relatively stable in most of the provinces in China. The most signification weekly increase in transacted hog prices are seen in the Northern region, including Beijing, Tianjin, Hebei, Shanxi and Inner Mongolia, with an increase of  RMB0.84/kg (US$0.14/kg) in the north, and the Northwest region including Shaanxi, Gansu, Xinjiang, with an increase of RMB0.73/kg (US$0.12/kg).

Mild increase in hog feed prices led to an average loss of RMB16 (US$2.61) per 120-kg hog. The hog-to-corn price ratio this week was 5.91:1, an increase of 2.66% from last week. This week is the 14thweek of continuous loss of the swine industry. However, the ratio is fluctuating and is moving towards the break-even point.

There was a slight fall in hog prices in the first week of June following the rise in the previous week. Besides, there is still shortage of finishing hog and trading is brisk. In fear of another fall in prices, producers are releasing more hogs into the market, hog traders faced less pressure to compete for the hogs.

In the following week, minor fluctuations are still expected,and a slight fall in hog prices is also expected after a surge inpork demand during the Dragon Boat Festival, peak summer and wheat harvest period.