May 9, 2012

China's pork prices drop to one-year low 

The pork prices in China slid 0.8% in the week to Sunday (May 6), prolonging a decline since the end of January to 14.7%, which is the lowest in nearly 12 months, the Ministry of Commerce said Tuesday.

Last week marked the 14th straight on-week decline for wholesale pork prices monitored by the ministry, as supply rose and consumption showed signs of decline with the approach of the summer.

Wholesale pork prices averaged RMB20.88 (US$3.31) per kilogramme last week, according to the ministry.

Average vegetable prices were flat, while edible oil prices rose 0.2-0.3%, the ministry said.

The National Development and Reform Commission (NDRC) said last month that it would start stockpiling pork soon to support hog prices after recent declines, as returns from hog production, which are measured by the hog-to-corn price ratio, fell below the break-even level of 6.

The NDRC, the country's top economic planner, also said the oversupply of pigs on the domestic market will likely last for some time, adding pork prices aren't expected to rebound until October.