July 24, 2015

 

China Live Hog Weekly: Rally shows no signs of cooling (week ended Jul 22, 2015)

 

An eFeedLink Exclusive

     
 

Price summary

 

Prices continued to rise.
 
 

Region

Province

Lowest price this week

Highest price this week

Average price this week

Lowest price last week

Highest price last week

Average price last week

Changes

North China

Hebei

17.30

17.90

17.60

17.40

17.80

17.54

0.06

Henan

17.10

17.30

17.25

16.90

17.20

17.08

0.17

East China

Shandong

17.20

17.70

17.48

17.20

17.80

17.48

0.00

Jiangsu

17.20

17.90

17.50

16.90

17.40

17.26

0.24

Central China

Hunan

17.30

17.60

17.42

16.50

16.90

16.73

0.69

South China

Guangxi

17.10

17.80

17.47

16.70

17.20

16.92

0.55

Guangdong

17.40

18.70

18.02

17.30

18.20

17.73

0.29

Southwest China

Sichuan

17.70

18.30

17.99

16.90

17.40

17.14

0.85

(All prices in RMB/kg)
RMB1=US$0.1610 (Jul 24)
                                                                  

 

Market analysis

 

Price hikes of hog slowed in the northern and central parts of China after surging past RMB17/kg in the previous week. In the southern region, prices continued to rise strongly amid tight availability. On average, hog prices increased 2% over the week.

 

Meanwhile, pork carcass prices rose by 1.2% RMB21.70/kg as supplies decreased 1.7% over the week.

 
 

Market forecast                                                          

 

Hog prices will continue to move higher despite flat demand during summer, as supplies of finishing hog diminish. Moreover, several farmers are holding back releases in anticipation of stronger prices. Currently, it is not uncommon for hogs released to reach 150kg, 50% higher than the standard finishing weight.

 

Should the availability of hog in China tighten further, prices are expected to surge to new highs during September, when the country prepares for the mid-Autumn Festival and the long October holidays.


eFeedLink offers monthly China hog and poultry market trackers, including analyses and on-the-ground information from Guangxi, Guangdong, Hunan, Hubei, Sichuan, Jiangsu, Henan, Shandong, Hebei and the whole of China. These provinces cover at least 70% of the total hog, poultry and related feed production or consumption in China. For more information, visit:
 
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