According to the Commodity Market Analysis System of SunSirs, the overall domestic and international prices of three RMB live pigs in November were at a relatively low level, fluctuating forward. The average price on November 1st was 14.58 RMB/kg, and on November 30th it was 14.53 RMB/kg, a decrease of 0.34% within the month.
Entering November, as the impact of rain and snow on transportation weakens, pigs under pressure are gradually being sold out, and the terminal meat market continues to be weak. The supply and demand pressure in the pig market is increasing, and slaughter companies have lowered their purchase prices again after completing the acquisition task. Domestic pig prices have fluctuated weakly.
In mid November, cold air once again hit, causing a significant drop in domestic temperatures. At the same time, some regions entered the season of making cured meat, and terminal meat consumption slightly rebounded. The domestic pig market prices fluctuated slightly and remained strong. After a slight rebound in pig prices, the intention of farmers to sell and monetize increased, and the market's strong supply and weak demand pressure reappeared. Slaughtering enterprises once again started to purchase at lower prices, and the domestic pig market prices came under pressure again. Supported by the third frozen meat storage policy at the end of the month, pig prices rebounded slightly again, and the overall domestic pig prices continued to fluctuate at a low level in November.
In November, domestic corn prices fluctuated weakly, falling by 0.65% within the month. Soybean meal prices continued to be weak, falling by 5.39% within the month. The cost of breeding and feeding continued to decline, and pig prices continued to fluctuate at low levels. The overall domestic pig to grain ratio continued to fluctuate around 5.5:1, and the pig breeding industry was still in a loss making situation. The enthusiasm of farmers to replenish their pens continued to be low.
SunSirs pig product analyst believes that overall, the current domestic pig inventory and breeding sow inventory are still in a reasonable range, and the supply in the future pig market will be relatively sufficient. In the fourth quarter, traditional meat demand is peak, and the demand in the terminal meat market is lower than expected. In the short term, the pressure of strong supply and weak demand in the market is difficult to alleviate, and the momentum for pig price recovery is insufficient. At the same time, pig prices continue to operate at a low level, and the pig breeding industry continues to suffer losses. Future policies will continue to exert efforts to stabilize prices, coupled with relatively high feeding costs, which will provide strong support for the bottom of pig prices in the future. Long short game, it is expected that the domestic pig market prices will continue to maintain a slight consolidation at the current level in November.
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