SunSirs: China Pig Prices Fluctuated and Declined in October

According to the Commodity Market Analysis System of SunSirs, the domestic and international prices of three RMB live pigs continued to fluctuate and decline in October, with an average price of 16.13 RMB/kg on October 1st and 14.47 RMB/kg on October 31st, a decrease of 10.29% during the month.

During the National Day holiday, the overall demand in the domestic terminal meat market was lower than expected, and coupled with the continuous sale of pigs after the holiday, the issue of strong supply and weak demand in the domestic pig market became prominent. In early October, domestic pig prices were under pressure and weakened, leading to a downward trend.

The continuous low and weak operation of pig prices has led to farmers being reluctant to sell and overpriced, and the pig market has entered a phase of tight supply. Some slaughtering enterprises in some regions have slightly increased their purchase prices, and the overall domestic pig market prices have fluctuated slightly in the middle of the year.

Starting from late October, the outbreak of swine fever in some regions of Africa has reappeared, with a significant increase in market liquidity intentions. The domestic pig market is facing increasing pressure from strong supply and weak demand, and domestic pig prices continue to decline under pressure.

In October, domestic corn prices continued to decline, with a decrease of 5.58% within the month. Soybean meal prices fluctuated weakly, with a decrease of 6.83% within the month. Overall, the overall cost of domestic breeding and feeding has shown a downward trend. The decline in pig prices has led to a continued decline in the domestic pig to grain ratio. At the end of the month, the overall domestic pig to grain ratio has dropped to around 5.5:1, and the breeding industry has entered a deep loss situation as a whole.

SunSirs pig product analyst believes that the demand in the terminal meat market continues to be weak, and the epidemic has triggered farmers to sell off. Under strong market supply and weak demand pressure, it is expected that domestic pig prices will continue to operate under pressure in November. Supported by the overall high cost of breeding and feeding, the overall space for pig price decline in the future is limited.

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