SunSirs: The Price of Live Pigs Fluctuated weakly in China in September

According to the Commodity Market Analysis System of SunSirs, the overall fluctuation of the price of three RMB live pigs in September was relatively weak, with an average price of 17.07 RMB/kg on September 1 and 16.13 RMB/kg on September 28, a decrease of 5.51% within the month.

Since September, due to the continuous downturn in terminal demand, slaughtering companies have obvious intentions to lower prices for acquisitions. The domestic pig market has ended the consolidation situation in the past three weeks, and the overall pressure on pig prices has slightly decreased.

The continuous weak operation of pig prices has led to some regions' farmers being reluctant to sell and overpriced. The overall supply of the pig market is tight, and due to the lower than expected demand in the terminal meat market, slaughtering enterprises still have the intention to purchase at lower prices. The supply and demand game in the pig market has become increasingly fierce, and the domestic pig market prices continue to be weak and consolidate in the middle of the year.

In late September, the terminal consumption of Mid-Autumn Festival and National Day was less than expected. In the early stage, the hog slaughter was gradually entering the market circulation. After the slaughter enterprises completed the acquisition task, they continued to reduce the purchase price. The problem of weak demand and strong supply in the market was highlighted, and the overall pressure on pig prices declined.

In September, domestic corn prices rose and fell, falling by 1.56% during the month. Soybean meal prices fluctuated from high to low, falling by 8.22% during the month. Overall, the overall cost of breeding and feeding has shown a slight downward trend, with the domestic pig to grain ratio dropping from 6:1 to around 5.8:1 during the fluctuation. The overall pig breeding industry has once again entered a loss situation, and the sustained high feeding costs will provide some support for the bottom of future pig prices.

The pig product analyst at SunSirs, believes that the rebound in demand in the terminal meat market during the National Day holiday is limited, and the supply in the pig market is relatively sufficient, with strong market supply and weak demand remaining unchanged. It is expected that there will still be some room for price decline in the domestic pig market in October. Supported by high breeding costs, the continued weakness of pig prices will once again trigger farmers' reluctance to sell and price support, and the overall decline in pig prices is limited.

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