July 7, 2022
 

China Hog: Prices rally 14% on tight supply (week ended Jul 4, 2022)

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As hog producers trimmed inventories since several months ago with prices low and feed costs soaring, tightening availability of finishing hog  sent prices surging over the week.

Compared with a year ago, weekly hog slaughter volume was lower by 16%.

Slaughter volumes in major wholesale centres shrank by 1.8% to 7,171 tonnes while pork carcass prices soared 9.8% to RMB23.86/kg.

On average, hog prices surged a whopping 13.8% to

RMB20/kg, from RMB17.56/kg. Compared with the same period in 2021, hog prices were higher by 53%.

Demand for pork is traditionally weak during summer in China. However, as hog producers keep commercial sows as breeders even as supplies are limited, hog market are projected to move higher.