SunSirs: The Price of Live Pigs Fluctuated weakly in December 2023

According to the Commodity Market Analysis System of SunSirs, the overall domestic and international prices of three RMB live pigs in December were weak and fluctuated at a low level, with an average price of 14.55 RMB/kg on December 1st and 14.42 RMB/kg on December 29th, a decrease of 0.89% within the month.

Entering December, the demand in the terminal meat market continued to be sluggish, and pig prices remained weak. Farmers did not reduce their intention to sell their pigs for cash. In addition, there was an increase in large-scale farming at the beginning of the month, highlighting the pressure of strong supply and weak demand in the domestic pig market. The overall pressure on domestic pig prices continued to be weak and downward.

In the middle of the month, the average price of live pigs in China once again fell to the 14 RMB/kg mark, and farmers showed a strong reluctance to sell and raise prices. At the same time, snowfall in many parts of the country has greatly increased the difficulty of transporting live pigs, and the overall supply of the live pig market is tight. Slaughtering companies raising prices and purchasing have driven the prices of the domestic live pig market to bottom out and continue to rise.

With the gradual weakening of the impact of rain and snow weather, coupled with the lower than expected suppression of demand in the terminal meat market, enterprises have lowered the purchase price of live pigs again after completing the acquisition task, and the overall price of domestic live pigs has fallen again in the latter half of the year.

In December, domestic corn prices fell comprehensively, falling by 4.65% within the month. Soybean meal prices fluctuated and moved forward, rising by 0.51% within the month. Overall, domestic breeding and feeding costs showed a downward trend, and pig prices continued to operate at a low level. Currently, the overall pig to grain ratio in China is around 5.8:1, and the pig breeding industry is still in a loss making situation.

SunSirs pig product analyst believes that as the end of the year approaches, the domestic pig output will continue to rise, and the demand for terminal meat markets has not fully recovered. In the short term, the market's strong supply and weak demand pressure is difficult to change. It is expected that the domestic pig market prices will continue to be under pressure and operate weakly in January 2024.

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