SunSirs: China Domestic Pig Prices have Declined rapidly after the Spring Festival

According to the Commodity Market Analysis System of SunSirs, the domestic and international prices of three RMB live pigs have rapidly fallen after the Spring Festival. The average price on February 17th was 15.52 RMB/kg, and on February 23rd it was 14.42 RMB/kg, a significant drop of 7.09% within seven days.

After the Spring Festival, the domestic pig market trade gradually recovered, and consumers concentrated on stocking up before the year, resulting in a very low demand for meat in the meat market after the year. Pigs gradually entered the market circulation link, highlighting the problem of strong supply and weak demand in the domestic pig market. Terminal sales were not smooth, and slaughter enterprises had obvious intentions to purchase at lower prices. In addition, the decline in pig prices once again induced farmers to sell and monetize, and the domestic pig market prices were under pressure and fell comprehensively.

After the Spring Festival, domestic corn prices weakened and stabilized, but rebounded slightly. Overall, they fluctuated and moved forward, falling by 0.24% within seven days. Soybean meal prices fluctuated weakly at a low level, falling by 1.82% within seven days. The cost of breeding and feeding continued to decline, and after a rapid decline in pig prices, the domestic pig to grain ratio dropped significantly to around 6.1:1. The overall pig breeding industry once again entered a break even point.

SunSirs pig product analyst believes that in the short term, it is difficult to alleviate the pressure of strong supply and weak demand in the market. The overall pig price will continue to operate under pressure, supported by the fact that the breeding industry is about to enter a loss situation again. At that time, farmers will be reluctant to sell and raise prices, which will provide some support for domestic pig prices. The overall downward space for domestic pig prices is limited.

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