September 27, 2010
In August prices of key agricultural products in Chongqing city edged up, with pork prices showing marked increases, as farmers were not willing to sell grain products too early given higher farming costs, inflation anticipation and rising government procurement prices, leading to a drop in supply.
Rapeseed oil was sold at RMB5.07 (US$0.75) per 500 grams, up 2.38% on-month or 7.40% on-year, while the price of soyoil reached RMB54.14 (US$8.08) per five litres, up 2.21% on-month or 1.59% on-year.
Meanwhile, lean pork price grew 15.85% on-month to RMB12.55 (US$1.87) per 500 grams and pork rib price was up 13.30% to RMB11.94 (US$1.78) per 500 grams. The surge in pork price was attributed to rising costs of feed and labour and the hot weather that reduced the pig birth rate.
Although pork price is expected to keep an uptrend in the upcoming National Day and Chinese New Year holidays, the upside would be limited considering the recent price surge and the government's austerity measures.
