According to the Commodity Market Analysis System of SunSirs, the domestic and international prices of three RMB live pigs stabilized in August and remained at a relatively high level with slight fluctuations. On August 1st, the average price was 16.08 RMB/kg, and on August 31st, the average price was 17.08 RMB/kg, with a monthly increase of 6.22%.
Entering August, the high temperature and rainy weather has hindered the transportation of live pigs, led to a stronger mentality of farmers who are reluctant to sell and hold back prices. At the same time, the policy of frozen meat storage has been strengthened, and the domestic pig market prices have continued to rise. On August 10th, pig prices rose to 17.17 RMB/kg, a significant increase of 24.69% compared to the low point of June 30th (13.77 RMB/kg) in the first half of the year. Within six weeks, the increase in pig prices has erased the decline in the first half of the year.
With the gradual easing of high temperature and rainy weather in China, the export of live pigs has gradually resumed. After the significant increase in pig prices, the intention of farmers to sell and monetize them continues to increase. In addition, the rapid increase in pig prices has led to poor terminal acceptance, and the demand for meat in the market has become even weaker. The overall procurement of slaughtering enterprises is cautious, and the intention to purchase at a lower price is obvious. The continuous high breeding costs provide strong support for the bottom of domestic pig prices, and the supply-demand game in the domestic pig market continues to intensify, Starting from mid August, the overall increase in domestic pig prices stabilized and then moved forward with a relatively high and slight fluctuation.
In August, domestic corn prices were relatively strong, rising by 2.17% during the month. Soybean meal prices fluctuated and rose by 13.14% during the month. The cost of breeding and feeding continued to rise, while piglet prices remained high. The cost of breeding continued to increase, and it will further support the bottom of future pig prices.
SunSirs pig product analyst believes that in the short term, there is a dilemma between the overall rise and fall of domestic pig prices. The supply-demand game in the pig market is constantly intensifying, and it is expected that the overall domestic pig prices will continue to be at the current level and slightly consolidate in September.
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