August 29, 2018
China Live Hog Weekly: Prices gain 22% in seven weeks, recover strongly from May's low (week ended Aug 17, 2018)
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Prices surged further.
The availability of finishing hog was tight due to low inventories, hence limiting pork carcass volumes of major distribution centres to 7,686 tonnes, which were 0.36% lower compared with the previous week. Demand for local pork remained firm, lifting prices by 0.54% to RMB18.77/kg.
With demand robust and supply limited, hog prices climbed another 1.98%, surging for the consecutive seventh week to accumulate a shopping 22% increase. Compared with May's multi-year low, hog prices have recovered prominently by 37%.
Supplies of pork are poised to stay insufficient in China, even though the government has attempted to resolve the supply crunch by importing from Russia. Hog market should remain firm although slaughterhouses will turn cautious with prices high.
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