January 20, 2021
China Hog: Market cools after 25% rally (week ended Jan 15, 2021)
Hog prices consolidated lower, after rallying 25% in seven weeks. Slaughterhouses, which were suffering losses due to the recent hog price rally, were reluctant to increase stockpiles. Additionally, the government releases state pork reserves in efforts to tame food inflation.
Demand for pork will increase in the coming weeks leading to the Chinese New Year on February 12. Pork imports will be limited due to stringent customs inspections and costs surge amid high freight charges. Meanwhile, with corn and soymeal prices skyrocketing, soaring feed expenses will lift hog rearing costs prominently. Consequently, hog prices are expected to move higher despite sales of pork reserves.
Full version of the report will be available at: https://spoutinfo.com/market-forecast-detail/30/32/277/2820
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