Price trend

According to the Commodity Market Analysis System of SunSirs, the overall domestic and international prices of ternary live pigs in May were at a relatively low level, fluctuating to be weaker. On May 1st, the average price was 14.57 RMB/kg, and on May 31st, the average price was 14.30 RMB/kg, a decrease of 1.85% during the month.

Analysis review

In May, the continuous weakness of pig prices induced farmers to be reluctant to sell out and raise prices, which led to a slight recovery of pig prices in some regions. The game between supply and demand in the domestic pig market continued to intensify, and the overall price of pigs rose and fell with each other. The overall price of the pig market at the beginning of the month was weak due to the weak demand for terminal meat.

In late May, pig prices in some regions fell below the 14 RMB/kg threshold, and farmers were generally reluctant to sell or raise prices. In order to ensure market supply, slaughterhouses slightly increased the purchase price of live pigs. The slight rebound in pig prices induced farmers to further hesitate to sell and raise prices. The overall supply in the domestic pig market was tight, supporting a slightly stronger rebound in domestic pig prices.

In May, domestic corn prices stopped falling and rebounded slightly, with a decrease of 1.31% during the month. Soybean meal prices fell significantly, with a decrease of 11.19% during the month. Wheat prices weakened and stabilized, with a decrease of 2.74% during the month. Breeding and feeding costs continued to decline. Although pig prices rebounded slightly in late May, the domestic pig to grain ratio remained at a relatively low level. The overall loss situation of the pig breeding industry will to some extent dampen farmers' enthusiasm for restocking, and the domestic pig stock will continue to decline.

Market outlook

Analysts of live pig products from SunSirs believe that, on the whole, the demand of the terminal meat market was still sluggish, the overall supply of the live pig market was relatively sufficient, and the reluctance to sell out has limited effect on the overall improvement of the domestic pig price. It is expected that the overall price of the domestic live pig market in June will fluctuate slightly at the current level.

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