SunSirs: China Domestic Pig Prices Continue to Operate at a Weak Bottom

According to the Commodity Market Analysis System of SunSirs, the domestic and international prices of three RMB live pigs continued to operate weakly at the bottom last week, with an average price of 10.40 RMB/kg at the beginning of the week and 10.32 RMB/kg over the weekend, a decrease of 0.77% during the week.

In mid March, domestic pig prices continued to decline weakly, with some inventory companies continuing to sell pigs. The problem of strong supply and weak demand in the domestic pig market continued to intensify, and pig prices in many parts of the country fell into the range of 10 RMB/kg, constantly breaking new lows in recent years. The pressure of oversupply is difficult to change, and domestic pig market prices continue to be under pressure and operate weakly at the bottom.

Last week, the overall price of corn in China remained stable, while the price of live pigs continued to be weak. The domestic pig to grain ratio fell to around 4.4:1, and the loss area of the domestic pig breeding industry continued to expand, which will further accelerate the reduction of domestic sow production capacity.

SunSirs pig product analyst believes that the continuous losses in the breeding industry and the deep decline in pig prices will to some extent support the increasing reluctance of farmers to sell. Recently, the overall decline in domestic pig prices has slowed down. Overall, the problem of strong supply and weak demand in the domestic pig market is difficult to solve in the short term, and it is expected that pig prices will continue to fluctuate at a low level.

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