SunSirs: China Pig Prices Continue to Fluctuate and Rise in March

According to the Commodity Market Analysis System of SunSirs, the domestic and international prices of Sanyuan live pigs continued to rise in March 2024, with an average price of 14.13 RMB/kg on March 1 and 15.10 RMB/kg on March 29, an increase of 6.86% within the month.

In March, the sustained low operation of pig prices has led to farmers being reluctant to sell or raise prices, resulting in a continuous tightening of supply in the domestic pig market. Slaughtering enterprises are constantly raising prices to replenish inventory, driving domestic pig prices to continue to fluctuate and operate strongly. Due to the continued sluggish demand in the terminal meat market, coupled with poor acceptance of current pig prices by slaughtering enterprises, their intention to purchase at a lower price has not decreased, and the market supply-demand game has intensified. At the end of the month, the overall rise in domestic pig prices has stabilized.

In March, domestic corn prices fluctuated downward, falling by 1.39% within the month, while soybean meal prices fluctuated upward, rising by 5.89% within the month. Overall, the cost of breeding and feeding is showing a rebound trend. The domestic pig to grain ratio in March has rebounded from around 5.9:1 at the beginning of the month to around 6.5:1 at the end of the month. The pig breeding industry has turned losses into profits as a whole in March, and the enthusiasm of farmers to replenish their pens has rebounded.

SunSirs pig product analyst believes that overall, the domestic pig market is currently relatively stable in terms of output, downstream demand continues to be weak, and temporary supply constraints are difficult to support the continued upward trend of domestic pig market prices. The market is playing a long short game, and it is expected that the overall domestic pig market prices will stabilize in April and then slightly consolidate.

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